Recent Question

Noncash investing and financing activities True or false: 1. The information in a statement of cash flows helps investors and creditors assess the company’s ability to pay dividends and meet obligations. 2. Financial statement readers can determine future investing and financing transactions by examining a company’s statement of cash flows. 3. In preparing a statement of cash flows, the issuance of debt should be re ...

Other / Other 08 Apr 2016

Land acquired from the issuance of common stock 1. On the statement of cash flows using the indirect method, patent amortization expense will a. be added to net income in the operating section. b. be deducted from net income in the operating section. c. appear as an inflow of cash in the investing section. d. appear as an outflow of cash in the investing section. 2. The indirect and direct methods of preparing the statement of cas ...

Other / Other 08 Apr 2016

Which of the following changes in retained earnings 1. Which of the following changes in retained earnings during a period will be reported in the financing activities section of the statement of cash flows? 1. Declaration and payment of a cash dividend during the period. 2. Net income for the period. a. 1 b. 2 c. Neither 1 nor 2. d. Both 1 and 2. 2. The statement of cash flows a. is prepared instead of an income statement unde ...

Other / Other 08 Apr 2016

In the bottom portion of the statement of cash flows 1. Which of the following would not appear in the operating activities section of a statement of cash flows prepared under the direct method? a. Cash receipts from customers b. Cash paid for income taxes c. Gain on sale of equipment d. Cash paid to employees 2. In the Garnet Company, the beginning and ending balances in Land were $198,000 and $240,000 respectively. During the yea ...

Other / Other 08 Apr 2016

All major financing and investing activities True or false: 1. The acquisition of a building by issuing bonds would be considered an investing and financing activity that did not affect cash. 2. All major financing and investing activities affect cash. 3. Cash provided by operations is generally equal to operating income. 4. Using the indirect method, an increase in accounts receivable during a period is deducted from net inc ...

Other / Other 08 Apr 2016

Each of the following items may be classified as operating 1. Under IFRS, the cash flow statement can be prepared using a. the direct method only. b. the indirect method only. c. either the direct or indirect method. d. the T-account method only. 2. Under IFRS, bank overdrafts are classified as a. operating activities. b. investing activities. c. financing activities. d. cash and cash equivalents. 3. Which of the followi ...

Other / Other 08 Apr 2016

Hogan Enterprises reported cash flow from operations 1 Doctor Company prepared the tabulation below at December 31, 2012. Net Income $307,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense, $32,000 Decrease in accounts receivable, $50,000 Increase in inventory, $12,000 Decrease in accounts payable, $8,600 Increase in income taxes payable, $1,50 ...

Other / Other 08 Apr 2016

The statement of cash flows reports each of the following 1. If a company reports a net loss, it a. may still have a net increase in cash. b. will not be able to pay cash dividends. c. will not be able to get a loan. d. will not be able to make capital expenditures. 2. In addition to the three basic financial statements, which of the following is also a required financial statement? a. the "Cash Budget" b. the Statement of Cas ...

Other / Other 08 Apr 2016

Plexis Company reported net income 1 Plough Company reported net income of $180,000 for the current year. Depreciation recorded on buildings and equipment amounted to $80,000 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $20,000 $15,000 Accounts receivable 24,000 32,000 Inventories 50,000 65,000 Prepaid expenses 9,50 ...

Other / Other 08 Apr 2016

All of the following statements about free cash flow are false 1. Tomas Pest Control Products has the following information available: Net Income $25,000 Cash Provided by Operations 33,000 Cash Sales 65,000 Capital Expenditures 10,000 Dividends Paid 2,000 What is Tomas’ free cash flow? a. $27,000 b. $23,000 c. $21,000 d. $10,000 2. During 2014, Harvey Industries reported cash provided by operations of $670,000, ca ...

Other / Other 08 Apr 2016