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Indicate where the event purchased land for cash 1. Indicate where the event paid income taxes would appear, if at all, on the statement of cash flows. a. Operating activities section b. Investing activities section c. Financing activities section d. Does not represent a cash flow 2. Indicate where the event ordinary shares issued for cash would appear, if at all, on the indirect statement of cash flows. a. Operating activities sect ...

Other / Other 05 Apr 2016

Which of the following would be subtracted from net income 1. Each of the following is added to net income in computing net cash provided by operating activities except a. amortization expense. b. an increase in accrued expenses payable. c. a gain on sale of equipment. d. a decrease in inventory. 2. Which of the following would be subtracted from net income using the indirect method? a. Depreciation expense b. An increase in acco ...

Other / Other 05 Apr 2016

Stockholders generally have the right to share 1. A corporation has a separate __________________________ apart from its owners. 2. The major advantages of the corporate form of organization include (1) limited _________________ of owners, (2) continuous ____________________ and (3) ease of transferring ___________________. 3. Stockholders elect the _______________, who in turn hire the ______________ of the company who have day to day ...

Other / Other 05 Apr 2016

The use of a worksheet to prepare a statement of cash flows True or false: 1. A loss on sale of equipment is added to net income in determining cash provided by operations under the indirect method. 2. In preparing a statement of cash flows, an increase in the Share Capital and Treasury Shares accounts during a period would be an investing activity. 3. Cash provided by operating activities fails to take into account that a company ...

Other / Other 05 Apr 2016

Non-cash 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 ...

Other / Other 05 Apr 2016

Rader Company had credit sales 1. Carter Company reports the following: End of Year Beginning of Year Inventory $25,000 $40,000 Accounts Payable 30,000 10,000 If cost of goods sold for the year is $210,000, the amount of cash paid to suppliers is a. $215,000. b. $205,000. c. $175,000. d. $245,000. 2. During the year, Salaries Payable decreased by ¥60,000. If Salary Expense amounted to ¥1 700,000 for the year, the cash ...

Other / Other 05 Apr 2016

The statement of cash flows is prepared from all 1. Which of the following steps is not required in preparing the statement of cash flows? a. Determine the net change in cash. b. Determine the net cash provided by operating activities. c. Determine cash from investing and financing activities. d. Determine the change in current assets. 2. Financing activities involve a. lending money to other entities and collecting on those loans ...

Other / Other 05 Apr 2016

The reconciling entry for depreciation expense in a worksheet True or false: 1. The statement of cash flows classifies cash receipts and cash payments into two categories: operating activities and nonoperating activities. 2. Financing activities include the obtaining of cash from issuing debt and repaying the amounts borrowed. 3. The adjusted trial balance is the only item needed to prepare the statement of cash flows. 4. Unde ...

Other / Other 05 Apr 2016

A measure that describes the cash remaining 1. When equipment is sold for cash, the amount received is reflected as a cash a. inflow in the operating section. b. inflow in the financing section. c. inflow in the investing section. d. outflow in the operating section. 2. The statement of cash flows will not provide insight into a. why dividends were not increased. b. whether cash flow is greater than net income. c. the exact pro ...

Other / Other 05 Apr 2016

The order of presentation of activities on the statement 1. Lending money and collecting the loans are a. operating activities. b. investing activities. c. financing activities. d. Non-cash investing and financing activities. 2. The best measure of a company's ability to generate sufficient cash to continue as a going concern is net cash provided by a. financing activities. b. investing activities. c. operating activities. d. pro ...

Other / Other 05 Apr 2016