Question 1

The following data are available for Alamo Corporation.  Net cash provided by investing activities is:

Accepted Answer

A)  $285,000.
B)  $260,000.
C)  $305,000.
D)  $425,000.E) None of the above
F) C) and D)

Question 2

Each of the following is an example of a significant noncash activity except

Accepted Answer

A)  conversion of bonds into common stock.
B)  exchanges of plant assets.
C)  issuance of debt to purchase assets.
D)  stock dividends.E) C) and D)
F) A) and B)

Question 3

If a company has both an inflow and outflow of cash related to property, plant, and equipment, the

Accepted Answer

A)  two cash effects can be netted and presented as one item in the investing activities section.
B)  cash inflow and cash outflow should be reported separately in the investing activities section.
C)  two cash effects can be netted and presented as one item in the financing activities section.
D)  cash inflow and cash outflow should be reported separately in the financing activities section.E) A) and D)
F) A) and C)

Question 4

In preparing net cash flow from operating activities using the direct method, each item in the income statement is adjusted from the accrual basis to the cash basis.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following transactions does not affect cash during a period?

Accepted Answer

A)  Write-off of an uncollectible account
B)  Collection of an accounts receivable
C)  Sale of treasury stock
D)  Exercise of the call option on bonds payableE) A) and B)
F) B) and C)

Question 6

Ale Company reports a $16,000 increase in inventory and a $8,000 increase in accounts payable during the year. Cost of Goods Sold for the year was $150,000. The cash payments made to suppliers were

Accepted Answer

A)  $150,000.
B)  $158,000.
C)  $126,000.
D)  $174,000.E) B) and C)
F) A) and D)

Question 7

Indicate where the payment of income taxes would appear, if at all, on the statement of cash flows.

Accepted Answer

A)  Operating activities section
B)  Investing activities section
C)  Financing activities section
D)  Does not represent a cash flowE) A) and B)
F) All of the above

Question 8

The statement of cash flows will not report the

Accepted Answer

A)  amount of checks outstanding at the end of the period.
B)  sources of cash in the current period.
C)  uses of cash in the current period.
D)  change in the cash balance for the current period.E) A) and B)
F) B) and D)

Question 9

The following data are available for Two-off Company.  Net cash provided by financing activities is:

Accepted Answer

A)  $180,000.
B)  $370,000.
C)  $360,000.
D)  $420,000.E) A) and C)
F) C) and D)

Question 10

If accounts receivable have increased during the period,

Accepted Answer

A)  revenues on an accrual basis are less than revenues on a cash basis.
B)  revenues on an accrual basis are greater than revenues on a cash basis.
C)  revenues on an accrual basis are the same as revenues on a cash basis.
D)  expenses on an accrual basis are greater than expenses on a cash basis.E) A) and B)
F) None of the above

Question 11

Land acquired from the issuance of common stock is reported

Accepted Answer

A)  as a financing activity.
B)  as an investing activity.
C)  as an operating activity.
D)  in a separate schedule at the bottom of the statement of cash flows.E) All of the above
F) A) and B)

Question 12

Which of the following transactions would not be classified as a financing activity?

Accepted Answer

A)  Purchase of treasury stock
B)  Payment of dividends
C)  Issuance of bonds at a discount
D)  Purchase of a long-term investment in bondsE) None of the above
F) All of the above

Question 13

Pare Company reported a net loss of $30,000 for the year ended December 31, 2014. During the year, accounts receivable decreased $15,000, merchandise inventory increased $25,000, accounts payable increased by $30,000, and depreciation expense of $20,000 was recorded. During 2014, operating activities

Accepted Answer

A)  used net cash of $10,000.
B)  used net cash of $25,000.
C)  provided net cash of $10,000.
D)  provided net cash of $25,000.E) All of the above
F) None of the above

Question 14

Using the indirect method, if equipment is sold at a gain, the

Accepted Answer

A)  sale proceeds received are deducted in the operating activities section.
B)  sale proceeds received are added in the operating activities section.
C)  amount of the gain is added in the operating activities section.
D)  amount of the gain is deducted in the operating activities section.E) A) and B)
F) A) and C)

Question 15

Financing activities involve

Accepted Answer

A)  lending money to other entities and collecting on those loans.
B)  cash receipts from sales of goods and services.
C)  acquiring and disposing of productive long-lived assets.
D)  long-term liability and stockholders' equity items.E) B) and C)
F) A) and B)

Question 16

Accounts receivable arising from sales to customers amounted to $86,000 and $77,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $290,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is

Accepted Answer

A)  $290,000.
B)  $299,000.
C)  $213,000.
D)  $280,000.E) C) and D)
F) None of the above

Question 17

Any item that appears on the income statement would be considered as either a cash inflow or cash outflow from operating activities.

Accepted Answer

A) True 
 B)False

Question 18

Rubble Company reported net income of $70,000 for the year. During the year, accounts receivable increased by $6,000, accounts payable decreased by $5,000 and depreciation expense of $8,000 was recorded. Net cash provided by operating activities for the year is

Accepted Answer

A)  $67,000.
B)  $89,000.
C)  $63,000.
D)  $70,000.E) A) and C)
F) B) and C)

Question 19

During 2015, Zuma Company had $150,000 in cash sales and $1,240,000 in credit sales. The accounts receivable balances were $180,000 and $215,000 at December 31, 2014 and 2015, respectively. Using the direct method of reporting cash flows from operating activities, what was the total cash collected from all customers during 2015?

Accepted Answer

A)  $1,205,000
B)  $1,425,000
C)  $1,390,000
D)  $1,355,000E) B) and C)
F) A) and D)

Question 20

A statement of cash flows should help investors and creditors assess the entity's ability to generate future income.

Accepted Answer

A) True 
 B)False

Exam 13: Statement of Cash Flows

Financing activities involve

Correct Answer
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Any item that appears on the income statement would be considered as either a cash inflow or cash outflow from operating activities.

Correct Answer
verified

The following data are available for Alamo Corporation. Net cash provided by investing activities is:

Correct Answer
verified

A statement of cash flows should help investors and creditors assess the entity's ability to generate future income.

Correct Answer
verified

Land acquired from the issuance of common stock is reported

Correct Answer
verified

Indicate where the payment of income taxes would appear, if at all, on the statement of cash flows.

Correct Answer
verified

The statement of cash flows will not report the

Correct Answer
verified

In preparing net cash flow from operating activities using the direct method, each item in the income statement is adjusted from the accrual basis to the cash basis.

Correct Answer
verified

Correct Answer
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The following data are available for Two-off Company. Net cash provided by financing activities is:

Correct Answer
verified

Correct Answer
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If a company has both an inflow and outflow of cash related to property, plant, and equipment, the

Correct Answer
verified

Ale Company reports a $16,000 increase in inventory and a $8,000 increase in accounts payable during the year. Cost of Goods Sold for the year was $150,000. The cash payments made to suppliers were

Correct Answer
verified

Using the indirect method, if equipment is sold at a gain, the

Correct Answer
verified

Which of the following transactions does not affect cash during a period?

Correct Answer
verified

Correct Answer
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Each of the following is an example of a significant noncash activity except

Correct Answer
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Which of the following transactions would not be classified as a financing activity?

Correct Answer
verified

Rubble Company reported net income of $70,000 for the year. During the year, accounts receivable increased by $6,000, accounts payable decreased by $5,000 and depreciation expense of $8,000 was recorded. Net cash provided by operating activities for the year is

Correct Answer
verified

If accounts receivable have increased during the period,

Correct Answer
verified

Exam 13: Statement of Cash Flows

Financing activities involve

Correct AnswerverifiedShow Answer

Any item that appears on the income statement would be considered as either a cash inflow or cash outflow from operating activities.

Correct AnswerverifiedShow Answer

The following data are available for Alamo Corporation. Net cash provided by investing activities is:

Correct AnswerverifiedShow Answer

A statement of cash flows should help investors and creditors assess the entity's ability to generate future income.

Correct AnswerverifiedShow Answer

Land acquired from the issuance of common stock is reported

Correct AnswerverifiedShow Answer

Indicate where the payment of income taxes would appear, if at all, on the statement of cash flows.

Correct AnswerverifiedShow Answer

The statement of cash flows will not report the

Correct AnswerverifiedShow Answer

In preparing net cash flow from operating activities using the direct method, each item in the income statement is adjusted from the accrual basis to the cash basis.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The following data are available for Two-off Company. Net cash provided by financing activities is:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If a company has both an inflow and outflow of cash related to property, plant, and equipment, the

Correct AnswerverifiedShow Answer

Ale Company reports a $16,000 increase in inventory and a $8,000 increase in accounts payable during the year. Cost of Goods Sold for the year was $150,000. The cash payments made to suppliers were

Correct AnswerverifiedShow Answer

Using the indirect method, if equipment is sold at a gain, the

Correct AnswerverifiedShow Answer

Which of the following transactions does not affect cash during a period?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Each of the following is an example of a significant noncash activity except

Correct AnswerverifiedShow Answer

Which of the following transactions would not be classified as a financing activity?

Correct AnswerverifiedShow Answer

Rubble Company reported net income of $70,000 for the year. During the year, accounts receivable increased by $6,000, accounts payable decreased by $5,000 and depreciation expense of $8,000 was recorded. Net cash provided by operating activities for the year is

Correct AnswerverifiedShow Answer

If accounts receivable have increased during the period,

Correct AnswerverifiedShow Answer

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