Indicate where the event purchased land and a building with
a mortgage would appear, if at all, on the indirect statement of cash flows.
Does not represent a cash flow
Investing activities section
Operating activities section
Financing activities
section
Of the items below, the one that appears first on the
statement of cash flows is
net increase
(decrease) in cash.
cash at the end of the period.
cash at the beginning of the period.
Non cash investing and financing activities.
If a company has both an inflow and outflow of cash related
to property, plant, and equipment, the
cash inflow and cash
outflow should be reported separately in the investing activities section.
two cash effects can be netted and presented as one item in
the investing activities section.
two cash effects can be netted and presented as one item in
the financing activities section.
cash inflow and cash
outflow should be reported separately in the financing activities section.
Which of the following would be subtracted from net income
using the indirect method?
A decrease in prepaid
expenses
An increase in
accounts receivable
Depreciation expense
An increase in
accounts payable
In addition to the three basic financial statements, which
of the following is also a required financial statement?
the "Cash
Budget"
the Statement of Cash Flows
the Statement of Cash
Inflows and Outflows
the "Cash
Reconciliation"
Under IFRS, bank overdrafts are classified as
financing activities.
operating activities.
cash and cash
equivalents.
investing activities.
Joan’s Vegetable Market had the following transactions
during 2013:
1. Issued $50,000 of par value common stock for cash.
2. Repaid a 6 year note payable in the amount of $22,000.
3. Acquired land by issuing common stock of par value
$100,000.
4. Declared and paid a cash dividend of $2,000.
5. Sold a long-term investment (cost $63,000) for cash of
$6,000.
6. Acquired an investment in IBM stock for cash of $12,000.
What is the net cash provided by investing activities?
$6,000
($6,000)
$12,000
$32,000
Blocker Company reported a net loss of $5,000 for the year
ended December 31, 2013. During the year, accounts receivable increased
$14,000, merchandise inventory decreased $10,000, accounts payable decreased by
$20,000, and depreciation expense of $10,000 was recorded. During 2013,
operating activities
used net cash of
$19,000.
used net cash of
$27,000.
provided net cash of
$27,000.
provided net cash of
$17,000
Which of the following adjustments to convert net income to
net cash provided by operating activities is not added to net income?
Patent Amortization
Expense
Depreciation Expense
Depletion Expense
Gain on Sale of
Equipment
Which of the following transactions does not affect cash
during a period?
Sale of treasury
stock
Collection of an
accounts receivable
Write-off of an uncollectible account
Exercise of the call
option on bonds payable
Carrot Company issued common stock for proceeds of $381,000
during 2013. The company paid dividends of $90,000 and issued a long-term note
payable for $95,000 in exchange for equipment during the year. The company also
purchased treasury stock that had a cost of $18,000. The financing section of
the statement of cash flows will report net cash inflows of
$183,000.
$273,000.
$489,000.
$363,000.
Which of the following adjustments to convert net income to
net cash provided by operating activities is correct?
Add to Net IncomeDeduct
from Net Income
Taxes Payable decrease
increase
Inventory decrease
increase
Accounts Receivableincrease decrease
Prepaid Expensesincrease decrease
Each of the following are particularly interested in the
statement of cash flows except
creditors.
employees.
shareholders.
government agencies
The statement of cash flows is prepared from all of the
following except
the adjusted trial
balance.
the current income
statement.
selected transaction
data.
comparative balance sheets.
The following data are available for Nemo Corporation.
Sale of land $250,000
Sale of equipment 125,000
Issuance of common stock 140,000
Purchase of equipment60,000
Payment of cash dividends 120,000
Net cash provided by investing activities is:
$455,000.
$315,000.
$335,000.
$260,000.