FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 16: Statement of Cash Flows

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

Multiple Choice

Review LaterAdd Note

Review Later

In calculating cash flows from operating activities using the indirect method, a gain on the sale of equipment is

A) added to net income
B) deducted from net income
C) ignored because it does not affect cash
D) reported supplementally as a noncash investing and financing activity

E) A) and D)
F) B) and D)

Correct Answer

verified

B

Question 2

Multiple Choice

Review LaterAdd Note

Review Later

Depreciation on factory equipment would be reported in the statement of cash flows prepared by the indirect method in

A) the Cash flows from financing activities section
B) the Cash flows from investing activities section
C) a separate schedule
D) the Cash flows from operating activities section

E) C) and D)
F) All of the above

Correct Answer

verified

Show Answer

Question 3

Multiple Choice

Review LaterAdd Note

Identify the section of the statement of cash flows (a-d) where each of the following items would be reported. -Loss on sale of equipment

Kennedy, Inc. reported the following data:? Prepare the Cash flows from operating activities section of the statement of cash flows using the indirect method.

The comparative balance sheets of Barry Company, for Years 1 and 2 ended December 31, appear below in condensed form.​ Additional data for the current year are as follows: (a)Net income, $75,800. (b)Depreciation reported on income statement, $38,000. (c)Fully depreciated equipment costing $60,000 was scrapped, no salvage, and equipment was purchased for $150,000. (d)Bonds payable for $75,000 were retired by payment at their face amount. (e)2,500 shares of common stock were issued at $30 for cash. (f)Cash dividends declared and paid, $40,000. (g)Investments of $100,000 were sold for $125,000.​Prepare a statement of cash flows using the indirect method.​

On the statement of cash flows, the Cash flows from financing activities section would include

Under the direct method of reporting cash flows from operations, the primary source of cash is cash received from customers.

The direct method of preparing the operating activities section of the statement of cash flows reports major classes of cash receipts and cash payments related to the day-to-day operations of the business.

Cash flows from operating activities, as part of the statement of cash flows, include cash transactions that enter into the determination of net income.

Which of the following should be deducted from net income in calculating net cash flow from operating activities using the indirect method?

Under the indirect method, expenses that do not affect cash are added to net income in the operating activities section of the statement of cash flows.

For each of the following activities that may take place during the accounting period, indicate the effect (a-g) on the statement of cash flows prepared using the indirect method. Choices may be selected as the answer for more than one question. -Exchange of land for common stock

To determine cash payments for merchandise for the statement of cash flows using the direct method, a decrease in accounts payable is added to the cost of merchandise sold.

The operating cash flow available for company use after purchasing the fixed assets that are necessary to maintain current productive capacity is called the

Which of the following increases cash?

Firefly Inc. sold land for $225,000 cash. The land had been purchased five years earlier for $275,000. The loss on the sale was reported on the income statement. On the statement of cash flows, what amount should Firefly report as an investing activity from the sale of the land?

Accounts receivable from sales to customers amounted to $40,000 and $32,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $110,000. Exclusive of the effect of other adjustments, the net cash flows from operating activities to be reported on the statement of cash flows using the indirect method is

Land costing $140,000 was sold for $173,000 cash. The gain on the sale was reported on the income statement as other income. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land?

A corporation uses the indirect method for preparing the statement of cash flows. A fixed asset has been sold for $25,000 representing a gain of $4,500. The value in the operating activities section regarding this event would be

Cash receipts received from the issuance of a mortgage notes payable would be classified as a (n)