FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 12: Statement of Cash Flows

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

True/False

Review LaterAdd Note

Review Later

The first step in preparing the worksheet is to enter the beginning and ending balances of balance sheet accounts.

Correct Answer

verified

True

Question 2

Multiple Choice

Review LaterAdd Note

Review Later

In calculating cash flows from operating activities using the indirect method, a loss 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) not reported on a statement of cash flows.

Correct Answer

verified

Show Answer

Question 3

True/False

Review LaterAdd Note

Using the direct method, major classes of investing and financing activities are listed in the operating activities section.

Assume that the Charleston Inc.uses the indirect method to depict cash flows.Indicate where, if at all, an inventory increase would be classified on the statement of cash flows.

Hoffman Company's net income for the current year was $480,000.Depreciation was $62,000.Accounts receivable and inventories decreased by $20,000 and $32,000, respectively.Prepaid expenses and salaries payable increased, respectively, by $2,000 and $16,000.Equipment was sold at a gain of $8,000.How much cash was provided by operating activities?

To determine the net cash provided (used) by operating activities, it is necessary to analyze

LKN Company reported net income of $90,000 for the year 2022.During 2022, accounts receivable increased by $6,000, accounts payable decreased by $4,000 and depreciation expense of $10,000 was recorded.Net cash provided by operating activities for 2022 is

Which of the following is not typically a characteristic experienced by a company during the introductory phase of the corporate life cycle?

Assume that the Kaenzig Corporation uses the indirect method to depict cash flows.Indicate where, if at all, common stock issued for cash would be classified.

Cash flows from operating activities, as reported on the statement of cash flows under the indirect method, would include

Assume that the Decker Corporation uses the indirect method to depict cash flows.Indicate where, if at all, dividends received on securities held would be reported on the statement of cash flows.

Which of the following is the first step in preparing the statement of cash flows?

If Reed Company realizes a loss of $9,000 on a cash sale of office equipment having a book value of $90,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is

McLaughlin Company issued common stock for proceeds of $558,000 during 2022.The company paid dividends of $99,000 and issued a long-term note payable for $375,000 in exchange for equipment during the year.The company also purchased treasury stock that had a cost of $81,000.The financing section of the statement of cash flows will report net cash inflows of

If Martinelli Corporation realizes a gain of $81,000 on a cash sale of equipment having a book value of $600,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is

When using the T-account approach, the change in cash is equal to the change in liabilities less the change in equity plus the change in noncash assets.

When equipment is sold for cash, the amount received is reflected as a cash

Cash from investing becomes less positive and cash from financing becomes more negative during the

Anjali Shah Company had credit sales of $1,600,000.The beginning accounts receivable balance was $165,000 and the ending accounts receivable balance was $280,000.Using the direct method of reporting cash flows from operating activities, what were the cash collections from customers during the period?

The payment of a cash dividend would be classified as a(n)