Question 1

Kennedy, Inc. reported the following data:
  Prepare the cash flows for operating activities under the indirect method as it would appear on the statement of cash flows.

Accepted Answer

The answer of Kennedy, Inc. reported the following data:
 ...

Question 2

On the statement of cash flows prepared by the indirect method, the cash flows from operating activities section would include

Accepted Answer

A)   receipts from the sale of investments
B)   amortization of premium on bonds payable
C)   payments for cash dividends
D)   receipts from the issuance of capital stockE) B) and C)
F) None of the above

Question 3

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

Accepted Answer

A)   receipts from the issuance of capital stock
B)   payments for dividends
C)   payments for retirement of bonds payable
D)   receipts from the sale of investmentsE) A) and C)
F) C) and D)

Question 4

The current period statement of cash flows includes the flowing:  The cash balance at the end of the period is

Accepted Answer

A)   $45,000
B)   $635,000
C)   $355,000
D)   $125,000E) A) and D)
F) B) and C)

Question 5

Preferred stock issued in exchange for land would be reported in the statement of cash flows in

Accepted Answer

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 sectionE) C) and D)
F) B) and D)

Question 6

Cash paid for preferred stock dividends should be shown on the statement of cash flows under

Accepted Answer

A)   investing activities
B)   financing activities
C)   noncash investing and financing activities
D)   operating activitiesE) B) and D)
F) B) and C)

Question 7

Which one of the following below would not be classified as an operating activity?

Accepted Answer

A)   interest expense
B)   income taxes
C)   payment of dividends
D)   selling expensesE) A) and D)
F) None of the above

Question 8

If $475,000 of bonds payable are sold at 101, $475,000 would be reported in the cash flows from financing activities section of the statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 9

Based on the following, what is free cash flow?

Accepted Answer

Operations includes $2,000 for depreciat...

Question 10

On the basis of the details of the common stock account presented below, calculate the total amount to be recorded in the financing section of the statement of cash flows. Indicate whether the amount results in an increase or decrease in cash.

Accepted Answer

The answer of On the basis of the details of...

Question 11

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.

Accepted Answer

The answer of Balances of the current asset and current...

Question 12

On the statement of cash flows, a $20,000 gain on the sale of fixed assets would be

Accepted Answer

A)   added to net income in converting the net income reported on the income statement to cash flows from operating activities
B)   deducted from net income in converting the net income reported on the income statement to cash flows from operating activities
C)   added to dividends declared in converting the dividends declared to the cash flows from financing activities related to dividends
D)   deducted from dividends declared in converting the dividends declared to the cash flows from financing activities related to dividendsE) A) and B)
F) A) and C)

Question 13

A business issues 20-year bonds payable in exchange for preferred stock. This transaction would be reported on the statement of cash flows in

Accepted Answer

A)   a separate schedule
B)   the cash flows from financing activities section
C)   the cash flows from investing activities section
D)   the cash flows from operating activities sectionE) A) and B)
F) B) and D)

Question 14

Sales reported on the income statement were $340,000. The accounts receivable balance declined $17,000 over the year. Determine the amount of cash received from customers.

Accepted Answer

The answer of Sales reported on the income statement were...

Question 15

Cash inflows and outflows are netted in the investing or financing sections of the statement of cash flows but are separately disclosed to give the reader full information.

Accepted Answer

A) True 
 B)False

Question 16

If land costing $145,000 was sold for $205,000, the $60,000 gain on the sale would be added to net income in of the operating activities section of the statement of cash flows (prepared by the indirect method).

Accepted Answer

A) True 
 B)False

Question 17

Rarely would 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

Question 18

Cash, as the term is used for the statement of cash flows, could indicate either cash or cash equivalents.

Accepted Answer

A) True 
 B)False

Question 19

Cash receipts from interest and dividends are classified as

Accepted Answer

A)   financing activities
B)   operating activities.
C)   investing activities.
D)   either financing or investing activities.E) A) and B)
F) A) and C)

Question 20

If accounts payable have increased during a period

Accepted Answer

A)   revenues on an accrual basis are less than revenues on a cash basis.
B)   expenses on an accrual basis are less than expenses on a cash basis.
C)   expenses on an accrual basis are the same as expenses on a cash basis.
D)   expenses on an accrual basis are greater than expenses on a cash basis.E) A) and B)
F) B) and C)

Exam 14: Statement of Cash Flows

Cash inflows and outflows are netted in the investing or financing sections of the statement of cash flows but are separately disclosed to give the reader full information.

Correct AnswerverifiedShow Answer

Based on the following, what is free cash flow?

Correct AnswerverifiedOperations includes $2,000 for depreciat...View AnswerShow Answer

On the statement of cash flows prepared by the indirect method, the cash flows from operating activities section would include

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Cash paid for preferred stock dividends should be shown on the statement of cash flows under

Correct AnswerverifiedShow Answer

The current period statement of cash flows includes the flowing: The cash balance at the end of the period is

Correct AnswerverifiedShow Answer

Sales reported on the income statement were $340,000. The accounts receivable balance declined $17,000 over the year. Determine the amount of cash received from customers.

Correct AnswerverifiedShow Answer

If land costing $145,000 was sold for $205,000, the $60,000 gain on the sale would be added to net income in of the operating activities section of the statement of cash flows (prepared by the indirect method).

Correct AnswerverifiedShow Answer

On the statement of cash flows, a $20,000 gain on the sale of fixed assets would be

Correct AnswerverifiedShow Answer

Rarely would 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

A business issues 20-year bonds payable in exchange for preferred stock. This transaction would be reported on the statement of cash flows in

Correct AnswerverifiedShow Answer

Cash receipts from interest and dividends are classified as

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

If accounts payable have increased during a period

Correct AnswerverifiedShow Answer

On the basis of the details of the common stock account presented below, calculate the total amount to be recorded in the financing section of the statement of cash flows. Indicate whether the amount results in an increase or decrease in cash.

Correct AnswerverifiedShow Answer

Cash, as the term is used for the statement of cash flows, could indicate either cash or cash equivalents.

Correct AnswerverifiedShow Answer

Which one of the following below would not be classified as an operating activity?

Correct AnswerverifiedShow Answer

If $475,000 of bonds payable are sold at 101, $475,000 would be reported in the cash flows from financing activities section of the statement of cash flows.

Correct AnswerverifiedShow Answer

Kennedy, Inc. reported the following data: Prepare the cash flows for operating activities under the indirect method as it would appear on the statement of cash flows.

Correct AnswerverifiedShow Answer

Preferred stock issued in exchange for land would be reported in the statement of cash flows in

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
Operations includes $2,000 for depreciat...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified