Question 1

The following information is available from the current period financial statements: Net income
$165,000
Depreciation expense
28,000
Increase in accounts receivable
16,000
Decrease in accounts payable
21,000
The net cash flow from operating activities using the indirect method is

Accepted Answer

A)   $230,000
B)   $188,000
C)   $198,000
D)   $156,000E) B) and C)
F) C) and D)

Question 2

There is no difference in the investing and financing sections of the statement of cash flows using the indirect and direct method.

Accepted Answer

A) True 
 B)False

Question 3

Cash flows from financing activities, as part of the statement of cash flows, would include any payments for dividends.

Accepted Answer

A) True 
 B)False

Question 4

The comparative balance sheet of ConnieJo Company, for December 31, Years 1 and 2 ended December 31 appears below in condensed form:   Additional data for the current year are as follows:
a) Fully depreciated equipment costing $39,000 was scrapped, no salvage, and equipment was purchased for $157,000.
b) Bonds payable for $100,000 were retired by payment at their face amount.
c) 5,000 shares of common stock were issued at $15 for cash.
d) Cash dividends declared were paid $28,000.
e) All sales are on account.
Prepare a statement of cash flows, using the direct method of reporting cash flows from operating activities.

Accepted Answer

The answer of The comparative balance sheet of ConnieJo Company,...

Question 5

Which of the following is a noncash investing and financing activity?

Accepted Answer

A)   payment of a cash dividend
B)   payment of a six-month note payable
C)   purchase of merchandise inventory on account
D)   issuance of common stock to acquire landE) None of the above
F) C) and D)

Question 6

Identify the section of the statement of cash flows a-d)  where each of the following items would be reported.
-Issuance of bond payable

Accepted Answer

A)  Operating activities
B)  Financing activities
C)  Investing activities
D)  Schedule of noncash financing and investingE) A) and B)
F) B) and D)

Question 7

Rarely will the cash flows from operating activities, as reported on the statement of cash flows, be the same as the net income reported on the income statement.

Accepted Answer

A) True 
 B)False

Exam 14: Statement of Cash Flows

Correct Answer
verified

Identify the section of the statement of cash flows a-d) where each of the following items would be reported. -Issuance of bond payable

Correct Answer
verified

Cash flows from financing activities, as part of the statement of cash flows, would include any payments for dividends.

Correct Answer
verified

There is no difference in the investing and financing sections of the statement of cash flows using the indirect and direct method.

Correct Answer
verified

Which of the following is a noncash investing and financing activity?

Correct Answer
verified

The following information is available from the current period financial statements: Net income $165,000 Depreciation expense 28,000 Increase in accounts receivable 16,000 Decrease in accounts payable 21,000 The net cash flow from operating activities using the indirect method is

Correct Answer
verified

Rarely will the cash flows from operating activities, as reported on the statement of cash flows, be the same as the net income reported on the income statement.

Correct Answer
verified

Exam 14: Statement of Cash Flows

Correct AnswerverifiedShow Answer

Identify the section of the statement of cash flows a-d) where each of the following items would be reported. -Issuance of bond payable

Correct AnswerverifiedShow Answer

Cash flows from financing activities, as part of the statement of cash flows, would include any payments for dividends.

Correct AnswerverifiedShow Answer

There is no difference in the investing and financing sections of the statement of cash flows using the indirect and direct method.

Correct AnswerverifiedShow Answer

Which of the following is a noncash investing and financing activity?

Correct AnswerverifiedShow Answer

The following information is available from the current period financial statements: Net income $165,000 Depreciation expense 28,000 Increase in accounts receivable 16,000 Decrease in accounts payable 21,000 The net cash flow from operating activities using the indirect method is

Correct AnswerverifiedShow Answer

Rarely will the cash flows from operating activities, as reported on the statement of cash flows, be the same as the net income reported on the income statement.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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