Acc557 Financial Accounting: Week 10 Study Guide (Chapter 13)

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Acc557 Financial Accounting
Week 10 Study Guide (Chapter 13) - Version

Multiple Choice Question 112
The following data are available for Quarter Company.
Increase in accounts payable $120,000
Increase in bonds payable 400,000
Saleof investments 150,000
Issuance of common stock 180,000
Payment of cash dividends 90,000
Net cash provided by financing activities is:
$280,000.
$460,000.
$490,000.
$520,000.

Multiple Choice Question 117
To determine the net cash provided (used) by operating activities, it is necessary to analyze
the current year's income statement.
a comparative balance sheet.
additional information.
all of these

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

Multiple Choice Question 63
In preparing a statement of cash flows, a conversion of bonds into common stock will be reported in
a separate schedule or note to the financial statements.
the stockholders' equity section.
the "extraordinary" section.
the financing section.

Multiple Choice Question 85
If accounts payable have increased during a period,
revenues on an accrual basis are less than revenues on a cash basis.
expenses on an accrual basis are the same as expenses on a cash basis.
expenses on an accrual basis are less than expenses on a cash basis.
expenses on an accrual basis are greater than expenses on a cash basis

Multiple Choice Question 61
Which of the following transactions does not affect cash during a period?
Write-off of an uncollectible account
Saleof treasury stock
Collection of an accounts receivable
Exercise of the call option on bonds payable

Multiple Choice Question 76
Blocker Company reported a net loss of $5,000 for the year ended December 31, 2013. During the year, accounts receivable increased $14,000, merchandise inventory decreased $10,000, accounts payable decreased by $20,000, and depreciation expense of $10,000 was recorded. During 2013, operating activities
used net cash of $19,000.
used net cash of $27,000.
provided net cash of $27,000.
provided net cash of $17,000.

Multiple Choice Question 111
The following data are available for Nemo Corporation.
Saleof land $250,000
Saleof equipment 125,000
Issuance of common stock 140,000
Purchase of equipment 60,000
Payment of cash dividends 120,000
Net cash provided by investing activities is:
$260,000.
$335,000.
$455,000.
$315,000

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

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

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

Multiple Choice Question 97
Which of the following would not be an adjustment to net income using the indirect method?
An increase in Prepaid Insurance
Amortization Expense
An increase in Land
Depreciation Expense

Multiple Choice Question 51
The acquisition of land by issuing common stock is
only reported if the statement of cash flows is prepared using the direct method.
a noncash transaction and would be reported in the body of a statement of cash flows.
a noncash transaction which is not reported in the body of a statement of cash flows.
a cash transaction and would be reported in the body of a statement of cash flows

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

Multiple Choice Question 109
In Stretch Company, there was an increase in the land account during the year of $48,000. Analysis reveals that the change resulted from a cash sale of land at cost $110,000, and a cash purchase of land for $158,000. In the statement of cash flows, the change in the land account should be reported in the investment section:
only as a purchase of land $158,000.
as a purchase of land $158,000 and a sale of land $110,000.
as a net purchase of land, $48,000.
only as a sale of land $110,000
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