ACC/305 ACC305 ACC 305 WEEK 10 QUIZ 1

ACC 305 WEEK 10 QUIZ 1

Multiple Choice Question 88

The following information on selected cash transactions for 2015 has been provided by Mancuso Company:

What is the cash provided (used) by investing activities for the year ended December 31, 2015, as a result of the above information?

$256,000.

 

$850,000.

 

$66,000

 

$210,000.

 

Multiple Choice Question 23

Of the following questions, which one would not be answered by the statement of cash flows?

What was the change in the cash balance during the period?

 

What was the cash used for during the period?

 

Where did the cash come from during the period?

 

Were all the cash expenditures of benefit to the company during the period?

 

Multiple Choice Question 35

In determining net cash flow from operating activities, a decrease in accounts payable during a period

requires an addition adjustment to net income under the indirect method.

 

requires a decrease adjustment to cost of goods sold under the direct method.

 

requires an increase adjustment to cost of goods sold under the direct method.

 

means that income on an accrual basis is less than income on a cash basis.

 

Multiple Choice Question 40

When using the indirect method to prepare the operating section of a statement of cash flows, which of the following is added to net income to compute cash provided by/used by operating activities?

Increase in accounts receivable.

 

Amortization of patent.

 

All of these are added to net income to arrive at cash flow from operating activities.

 

Gain on sale of land.

 

Multiple Choice Question 106

Jamison Corp.'s balance sheet accounts as of December 31, 2015 and 2014 and information relating to 2015 activities are presented below.

December 31,

Information relating to 2015 activities:

• Net income for 2015 was $1,300,000.
• Cash dividends of $400,000 were declared and paid in 2015.
• Equipment costing $1,000,000 and having a carrying amount of $320,000 was sold in 2015 for $360,000.
• A long-term investment was sold in 2015 for $320,000. There were no other transactions affecting long-term investments in 2015.
• 20,000 shares of common stock were issued in 2015 for $25 a share.
• Short-term investments consist of treasury bills maturing on 6/30/16.

Net cash provided by Jamison’s 2015 operating activities was

$1,960,000.

 

$1,920,000.

 

$1,880,000.

 

$1,300,000.

 

Multiple Choice Question 81

Cashman Company reported net income of $265,000 for the year ended 12/31/15. Included in the computation of net income were: depreciation expense, $45,000; amortization of a patent, $24,000; income from an investment in common stock of Linda Inc., accounted for under the equity method, $36,000; and amortization of a bond premium, $9,000. Cashman also paid a $60,000 dividend during the year. The net cash provided by operating activities would be reported at

$181,000.

 

$229,000.

 

$289,000.

 

$241,000.

 

Multiple Choice Question 41

When using the indirect method to prepare the operating section of a statement of cash flows, which of the following is deducted from net income to compute cash provided by/used by operating activities?

Gain on sale of land.

 

Decrease in accounts receivable.

 

Amortization of patent.

 

All of the above are deducted from net income to arrive at cash flow from operating activities.

 

IFRS Multiple Choice Question 08

Ocean Company follows IFRS for its external financial reporting. Which of the following methods of reporting are acceptable under IFRS for the items shown?

Interest received

Dividends received

 

Operating Investing

 

Financing Investing

 

Investing Financing

 

Operating Financing

 

Multiple Choice Question 90

Donnegan Company reported operating expenses of $325,000 for 2015. The following data were extracted from the company’s financial records:

	12/31/14	12/31/15
Prepaid Expenses	$ 60,000	$69,000
Accrued Expenses	210,000	255,000

On a statement of cash flows for 2015, using the direct method, cash payments for operating expenses should be

$379,000.

 

$361,000.

 

$289,000.

 

$271,000.

 

Multiple Choice Question 67

Financial statements for Kiner Company are given below:

Kiner Company

Total assets on the balance sheet at December 31, 2015 are $4,432,000. Accumulated deprecia-tion on the equipment sold was $224,000.

Capital stock (plus any additional paid-in capital) at December 31, 2015 was

$1,840,000.

 

$2,480,000.

 

$1,600,000.

 

$1,040,000.

 

Multiple Choice Question 61

Equipment that cost $525,000 and had a book value of $234,000 was sold for $270,000. Data from the comparative balance sheets are:

	12/31/15	12/31/14
Equipment	$3,240,000	$2,925,000
Accumulated Depreciation	990,000	855,000

Depreciation expense for 2015 was

$426,000.

 

$462,000.

 

$81,000.

 

$54,000.

 

IFRS Multiple Choice Question 12

Surf Company follows IFRS for its external financial reporting. The following amounts were available at December 31, 2015:

Interest paid		$25,000
Dividends paid		16,000
Taxes paid		37,000

Under IFRS, what is the maximum amount that could be reported for cash used by financing activities for Surf Company for the year ended December 31, 2015?

$53,000

 

$78,000

 

$62,000

 

$41,000

 

Multiple Choice Question 92

Alex Company prepares its statement of cash flows using the direct method for operating activities. For the year ended December 31, 2015, Alex Company reports the following activity:

What is the amount of cash collections from customers reported by Alex Company for the year ended December 31, 2015?

$2,010,000

 

$2,750,000

 

$1,530,000

 

$2,140,000

 

Multiple Choice Question 32

In a statement of cash flows, the cash flows from investing activities section should report

the assignment of accounts receivable.

 

a major repair to machinery charged to accumulated depreciation.

 

the issuance of common stock in exchange for a factory building.

 

stock dividends received.

 

Multiple Choice Question 29

The amortization of bond premium on long-term debt should be presented in a statement of cash flows (using the indirect method for operating activities) as a(n)

investing activity.

 

deduction from net income.

 

financing activity.

 

addition to net income.