Question Details

If accounts receivable have increased 




1.	If accounts receivable have increased during the period,
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.

	2.	If accounts payable have increased during a period,
a.	revenues on an accrual basis are less than revenues on a cash basis.
b.	expenses on an accrual basis are less than expenses on a cash basis.
c.	expenses on an accrual basis are greater than expenses on a cash basis.
d.	expenses on an accrual basis are the same as expenses on a cash basis.

	3.	Which one of the following affects cash during a period?
a.	Recording depreciation expense
b.	Declaration of a cash dividend
c.	Write-off of an uncollectible account receivable
d.	Payment of an accounts payable

	4.	In calculating cash flows from operating activities using the indirect method, a gain on the sale of equipment is
a.	added to net income.
b.	deducted from net income.
c.	ignored because it does not affect cash.
d.	not reported on a statement of cash flows.

	5.	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
a.	$67,000.
b.	$89,000.
c.	$63,000.
d.	$70,000.





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