FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 17: Reporting and Analyzing Cash Flows

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

Multiple Choice

Review LaterAdd Note

Review Later

The direct method for the preparation of the operating activities section of the statement of cash flows:

A) Separately lists each major item of operating cash receipts.
B) Separately lists each major item of operating cash payments.
C) Separately lists each major item of operating cash receipts and cash payments.
D) Reports net income and then adjusts it for items necessary to determine net cash provided or used by operating activities.
E) All of these answers are correct.

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

Correct Answer

verified

Show Answer

Question 2

True/False

Review LaterAdd Note

Review Later

On the statement of cash flows,business operations are classified as operating,investing,or financing activities.

A) True
B) False

Correct Answer

verified

Show Answer

Question 3

Multiple Choice

Review LaterAdd Note

Changes in notes payable,non-current liabilities,and equity accounts are usually used in calculating and reporting:

Selected balances from Poppy Company's records are as follows:

Investments must be within 6 months of their maturity dates to be classified as cash equivalents.

A statement of cash flows should reconcile the differences between the beginning and ending balances of:

The purpose of the statement of cash flows is to report the major items comprising _____________ and ________________.

The appropriate statement of cash flows activity category for the purchase of land in exchange for common shares is:

A gain on the disposal of a long-term asset:

The statement of cash flows is divided into three sections called the _____________,____________,and _____________ sections.

Investing activities include:

When using the direct method,which of the following should be reported as a source of cash from operating activities?

The full disclosure principle requires that noncash investing and financing activities be disclosed in a separate schedule attached to the statement of cash flows,or in the accompanying notes.

A purchase of land in exchange for shares is disclosed in a separate schedule attached to the statement of cash flows or in a note to the statement.

A noncash investing transaction should be disclosed as a note to the statement of cash flows.

Equipment costing $100,000 with accumulated depreciation of $40,000 is sold at a loss of $10,000.The cash received from the sale was $40,000.

An investment that must be readily convertible to known amounts of cash,that is subject to insignificant risk of changes in value,and normally qualifies only when it has a short maturity of three months or less from the date of acquisition is called a(n) :

Under the indirect method,noncash operating expenses are added back to net income when preparing the investing section of the statement of cash flows.

Reconstruction analysis is used to identify the types of purchases and disposals of property,plant and equipment by reproducing the entries that occurred in the year.

The appropriate statement of cash flow activity category for the purchase of equipment for cash is: