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Exam 16: Statement of Cash Flows

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Question 71

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Sales for the year were $600,000. Accounts receivable were $100,000 and $80,000 at the beginning and end of the year. Cash received from customers to be reported on the cash flow statement using the direct method is

A) $700,000
B) $600,000
C) $580,000
D) $620,000

E) A) and B)
F) All of the above

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Question 72

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Cash flows from investing activities, as part of the statement of cash flows, include payments for the acquisition of fixed assets.

A) True
B) False

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Question 73

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The cash flows from operating activities are reported by the direct method on the statement of cash flows. Determine the following:

In preparing the cash flows from operating activities section of the statement of cash flows by the indirect method, the amortization of bond discount for the period is deducted from the net income for the period.

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

The statement of cash flows shows the effects on cash of a company's operating, investing, and financing activities.

Sales reported on the income statement were $690,000. The accounts receivable balance declined $39,000 over the year. Determine the amount of cash received from customers.

Investing activities include

To arrive at cash flows from operations, it is necessary to convert the income statement from an accrual basis to the cash basis of accounting.

A company purchases equipment for $32,000 cash. This transaction should be shown on the statement of cash flows under

The comparative balance sheet of Barry Company, for 2011 and the preceding year ended December 31, 2010, appears below in condensed form: Additional data for the current year are as follows: Prepare a statement of cash flows using the indirect method.

To determine cash payments for operating expenses for the cash flow statement using the direct method, a decrease in prepaid expenses is added to operating expenses other than depreciation.

Balances of the current asset and current liability accounts at the end and beginning of the year are as follows: Use the direct method to prepare the cash flows from operating activities section of a statement of cash flows.

Which of the following is not one of the four basic financial statements?

When using the worksheet method to analyzing noncash accounts , no order of analysis is required, but it is more efficient to start with Retained Earnings and proceed upward in the account listing.

The statement of cash flows is one of the basic financial statements.

On the statement of cash flows, a $7,500 gain on the sale of fixed assets would be

Which of the following should be shown on a statement of cash flows under the financing activity section?

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

Cash paid for equipment would be reported in the statement of cash flows in