FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 16: Reporting the Statement of Cash Flows

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 51

True/False

Review LaterAdd Note

Review Later

The FASB recommends that the operating section of the statement of cash flows be reported using the direct method.

A) True
B) False

Correct Answer

verified

Show Answer

Question 52

Essay

Review LaterAdd Note

Review Later

Use the information provided to calculate the cash paid for insurance for the period.

Correct Answer

verified

Show Answer

Question 53

True/False

Review LaterAdd Note

A spreadsheet can help organize the information needed to prepare a statement of cash flows.

Financing activities include (a)the purchase and sale of long-term assets, (b)the purchase and sale of short-term investments,and (c)lending and collecting on loans.

A company had average total assets of $1,660,000,total cash flows of $1,320,000,cash flows from operations of $205,000,and cash flows from financing of $750,000.The cash flow on total assets ratio equals:

Managers only use the cash flow statement to evaluate the net cash increase or decrease,and do not pay much attention to the details of cash flows from operating activities,cash flows from investing activities,and cash flows from financing activities.

Fernwood Company is preparing the company's statement of cash flows for the fiscal year just ended.The following information is available: The amount of cash paid for dividends was:

A main purpose of the statement of cash flows is to report all the major cash ________ and cash _______________. Answers can appear in any order.

A company reported that its bonds with a par value of $50,000 and a carrying value of $57,000 are retired for $60,000 cash,resulting in a loss of $3,000.The amount to be reported under cash flows from financing activities is:

In preparing Marjorie Company's statement of cash flows for the most recent year,the following information is available: Net cash flows from investing activities for the year were:

The statement of cash flows reports and proves the net change in cash for a reporting period.

If a company borrows money from a bank,the interest paid on this loan should be reported on the statement of cash flows as a(n) :

Use the following income statement and information about selected current assets and current liabilities to calculate the net cash provided or used by operating activities using the indirect method. Selected beginning and ending balances of current asset and current liability accounts,all of which relate to operating activities,are as follows:

A cash equivalent is:

The accounting principle that requires important noncash financing and investing activities be reported on the statement of cash flows or in a footnote is the:

A noncash investing transaction should be disclosed in either a footnote or at the bottom of the statement of cash flows.

When preparing the operating activities section of the statement of cash flows using the indirect method,non-operating gains are added to net income.

When analyzing the changes on a spreadsheet used to prepare a statement of cash flows,the cash flows from financing activities generally affect:

Alvez Company reports net income of $305,000 for the year ended December 31.It also reports $93,700 depreciation expense and a $10,000 loss on the sale of equipment.Its comparative balance sheet reveals a $40,200 increase in accounts receivable,a $10,200 decrease in prepaid expenses,a $15,200 increase in accounts payable,a $12,500 decrease in wages payable,and a $100,000 decrease in notes payable.Calculate the cash provided (used) in operating activities using the indirect method.

The gain or loss from retirement of debt is reported under cash flows from operating activities on the statement of cash flows using the direct method.