FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 12: Reporting and Analyzing Cash Flows

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

Essay

Review LaterAdd Note

Review Later

Explain how the cash flows from operating activities section of the statement of cash flows is prepared when using the direct method.

Correct Answer

verified

The direct method for reporting cash flo...

View Answer

Show Answer

Question 22

Multiple Choice

Review LaterAdd Note

Review Later

The statement of cash flows reports:

A) Assets, liabilities and equity
B) Revenues, gains, expenses and losses
C) Cash inflows and outflows for an accounting period
D) Equity, net income and dividends
E) Changes in equity

F) B) and D)
G) B) and C)

Correct Answer

verified

Show Answer

Question 23

True/False

Review LaterAdd Note

The payment of cash dividends never changes the balance of retained earnings.

The cash flow on total assets ratio is defined as average total assets divided by operating income.

The statement of cash flows explains the difference between the beginning and ending balances of cash and cash equivalents.

Selected information from Doodle Company's for 2010 is below (in millions) : What is the amount of cash received from Doodle's customers during 2010?

The use of a spreadsheet for analysis is especially useful when preparing the statement of cash flows using the _____________ method.

The cash flow on total assets ratio is computed by dividing _____________ by ____________.

Under IFRS, cash outflows for interest expense are classified as

For each of the following independent cases, use the information provided to calculate the missing cash inflow or cash outflow: (a.) (b.) (c.) (d.)

Explain the value that separating cash flows into operating activities, investing activities and financing activities has to financial statement users when it comes analyzing cash flows and the company's financial condition.

The FASB requires a reconciliation of net income to net cash provided or used by operating activities when the ______________ method is used.

The conversion of preferred stock to common stock is disclosed in the financing section of the statement of cash flows.

When preparing the operating section of the statement of cash flows using the indirect method, non-operating gains are added back to net income.

Use the following company information to prepare a schedule of significant noncash investing and financing activities: (a) Sold a building with a book value of $125,000 for $195,000 cash and land with a book value of $32,000 for $65,000 cash. (b) Issued 10,000 shares of $10 par value common stock in exchange for equipment with a market value of $135,000. (c) Retired a $100,000, 10% bond by issuing another $100,000, 12% bond issue. (d) Acquired land by issuing a ten-year, 9%, $44,000 note payable.

_____________ activities include the cash effects of transactions and events that determine net income.

When analyzing the changes on a spreadsheet used to prepare a statement of cash flows, the cash flows from investing activities generally affect:

Most managers stress the importance of understanding and predicting cash flows for business decisions.

Noncash financing and investing activities are disclosed in the ____________ or in a separate ______________________________.

Wessen Company reports net income of $180,000 for the year ended December 31, 2010. It also reports $45,800 depreciation expense, $21,410 amortization expense and a $15,000 gain on the sale of machinery. Its comparative balance sheets reveal a $28,300 increase in accounts receivable, $20,400 decrease in accounts payable, $10,470 increase in prepaid expenses, and $33,140 decrease in wages payable. What is the net cash flows provided (used) by operating activities using the indirect method?