FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 5: The Statement of Cash Flows

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 61

True/False

Review LaterAdd Note

Review Later

A Statement of Cash Flows is designed to help investors, creditors, and others to project a company's future cash flows.

Correct Answer

verified

Show Answer

Question 62

Multiple Choice

Review LaterAdd Note

Review Later

Which of the following would cause an inflow of cash?

A) Payment of a long-term bond
B) Sale for cash of a short-term investment at its cost
C) Payment of accounts payable
D) Repurchase of common stock for cash
E) Accrual of a dividend

Correct Answer

verified

Show Answer

Question 63

Multiple Choice

Review LaterAdd Note

As per ASPE, Dividends received from trading securities would be classified into which of the following categories for purposes of disclosure in the Statement of Cash Flows?

Assume cash paid to suppliers for 2011 is $420,000; that merchandise inventory increased by $20,000 during the year, and that cost of goods sold was $415,000 for 2011. During 2011, accounts payable must have:

When preparing the Statement of Cash Flows, which of the following sources of information should be consulted after considering all others?

Under IFRS, dividends paid may be classified as:

The purchase of securities available for sale but not considered cash equivalents would be classified into which of the following categories for purposes of disclosure in the Statement of Cash Flows?

A loss on the sale of machinery in the ordinary course of business should be presented in a Statement of Cash Flows as a(n) :

How is depreciation expense treated in the Statement of Cash Flows and related disclosures when the statement is prepared using the indirect format?

Net income was $50,000 and cost of goods sold was $150,000. Inventories increased by $10,000, and trade accounts payable increased by $12,000. Calculate the amount of cash paid to suppliers.

A corporation paid $4,000 cash for rent. This payment should be reflected on the Statement of Cash Flows as a:

Under IFRS, interest received may be classified as operating or financing activities.

In a Statement of Cash Flows:

The records of WXY provided the following information for the year ended December 31, 2011: (1) Purchased a warehouse and paid for it by issuing 1,000 common shares; market value was $35 per share. (2) Inventory increased by $4,000. (3) Accounts payable decreased by $6,000. (4) Declared a cash dividend, $5,000. (5) Depreciation expense, $2,000. (6) Net income, $19,000. (7) Loss on sale of machine, $3,000. (8) On December 31, 2011, paid insurance premium on all assets, for 2012 and 2013, $800. There was no prepaid insurance on January 1, 2011. What was the net cash inflow from operating activities for 2011?

WXY reported sales revenue of $40,000 and expenses of $35,000 during the period ended December 31, 2011. During the year, accounts receivable increased by $1,500; merchandise inventory increased by $1,000; accounts payable increased by $500; dividends payable decreased by $700; and depreciation expense of $2,500 was recorded. What was the amount of net cash flow from operating activities?

The records of BCD provided the following information for the year ended December 31, 2011: (1) $\begin{array} { | l | r | r | } \hline \text { Balance sheet: } & \mathbf { 2 0 1 1 } & \mathbf { 2 0 1 0 } \\\hline \text { Cash } & \$ 18,000 & \$ 20,000 \\\hline \text { Accounts receivable (net) } & 26,000 & 22,000 \\\hline \text { Inventory } & 30,000 & 27,000 \\\hline \text { Capital assets (net) } & 75,000 & 76,000 \\\hline \text { Payable (short term) } &41,000 & 40,000 \\\text { Bonds payable }&50,000&60,000\\\hline \text { Common stock } &30,000&30,000 \\\hline\text { Retained earnings }&18,000&?\\\hline\end{array}$ (2) Cash dividends of $5,000 were declared in 2010 and paid in 2011, and cash dividends of $2,000 were declared and paid in 2011. (3) Net loss in 2011, $1,000. (4) Depreciation expense for 2011, $5,000. Calculate the amount of net cash from operating activities during 2011.

A corporation has paid $20,000 in cash dividends each year on its common shares. Although during year 1 the company had a cash shortage, it declared the dividend. However, it was stipulated that the $20,000 cash dividend would not be paid until year 2. This dividend will affect the year 1 Statement of Cash Flows by:

Cash from customers equals sales plus the increase in accounts receivable for the year.

Under IFRS, term preferred shares near their maturity date may be classified as cash equivalents for purposes of the Statement of Cash Flows.

ABC reported sales revenue of $100,000 and expenses of $106,000 for the period ended December 31, 2011; accounts receivable decreased by $500; accounts payable increased by $2,500; accrued wages payable decreased by $1,500; short-term loans to banks increased by $600; and depreciation expense of $4,000 was recorded. What was the amount of net cash flow from operating activities for 2011?