Acc557 Financial Accounting: Week 10 Chapter 13 Study Guide (15 MCQs) - Version 2

Important reminder: The questions listed in this tutorial might EITHER be in a different order with your current requirement or TOTALLY DIFFERENT version of questions altogether. Please always compare and review your current requirement (questions) with the tutorial questions!

Acc557 Financial Accounting
Week 10 Study Guide (15 MCQs)

Multiple Choice Question 86
1. Which one of the following affects cash during a period?
Payment of an accounts payable
Recording depreciation expense
Write-off of an uncollectible account receivable
Declaration of a cash dividend

Multiple Choice Question 106
2. Land acquired from the issuance of common stock is reported
as a financing activity.
in a separate schedule at the bottom of the statement.
as an investing activity.
as an operating activity.

Multiple Choice Question 151
3. The information to prepare the statement of cash flows usually comes from each of the following except
the comparative balance sheet.
the current income statement.
the retained earnings statement.
additional information.

Multiple Choice Question 46
4. The statement of cash flows will not report the
amount of checks outstanding at the end of the period.
change in the cash balance for the current period.
sources of cash in the current period.
uses of cash in the current period.

Multiple Choice Question 90
5. Starting with net income and adjusting it for items that affected reported net income but which did not affect cash is called the
cost-benefit method.
direct method.
indirect method.
working capital method

Multiple Choice Question 93
6. In developing the cash flows from operating activities, most companies in the U. S.
prepare the operating activities section on the accrual basis.
use the direct method.
use the indirect method.
present both the indirect and direct methods in their financial reports.

Multiple Choice Question 71
7. Carrot Company issued common stock for proceeds of $381,000 during 2013. The company paid dividends of $90,000 and issued a long-term note payable for $95,000 in exchange for equipment during the year. The company also purchased treasury stock that had a cost of $18,000. The financing section of the statement of cash flows will report net cash inflows of
$489,000.
$183,000.
$363,000.
$273,000

IFRS Multiple Choice Question 223
8. Each of the following items may be classified as operating or financing activities under IFRS except
dividends paid.
dividends received.
interest paid.
All of these may be classified as such.

Multiple Choice Question 74
9. Accounts receivable arising from sales to customers amounted to $45,000 and $50,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $160,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is
$205,000.
$155,000.
$165,000.
$160,000

Multiple Choice Question 120
10. The statement of cash flows will not provide insight into
whether cash flow is greater than net income.
why dividends were not increased.
the exact proceeds of a future bond issue.
how the retirement of debt was accomplished.

Multiple Choice Question 83
11. Which one of the following items is not necessary in preparing a statement of cash flows?
Determine the cash in all bank accounts
Determine the change in cash
Determine the cash provided by operations
Determine cash from financing and investing activities

Multiple Choice Question 44
12. If a company reports a net loss, it
will not be able to pay cash dividends.
may still have a net increase in cash.
will not be able to get a loan.
will not be able to make capital expenditures.

Multiple Choice Question 108
13. In Flagg Company, net income is $280,000. If accounts receivable increased $145,000 and accounts payable decreased $50,000, net cash provided by operating activities using the indirect method is:
$475,000.
$185,000.
$85,000.
$375,000.

Multiple Choice Question 56
14. The category that is generally considered to be the best measure of a company's ability to continue as a going concern is
usually different from year to year.
cash flows from operating activities.
cash flows from investing activities.
cash flows from financing activities.

Multiple Choice Question 150
15. Financing activities involve
cash receipts from sales of goods and services.
acquiring and disposing of productive long-lived assets.
lending money to other entities and collecting on those loans.
long-term liability and owners' equity items.
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