FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 24: The Statement of Cash Flows

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 31

Multiple Choice

Review LaterAdd Note

Review Later

The retirement of bonds for cash is reported under which of the following sections of the statement of cash flows?

A) Financing Activities
B) Operating Activities
C) Investing Activities
D) Disclosures

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

Correct Answer

verified

Show Answer

Question 32

Multiple Choice

Review LaterAdd Note

Review Later

A list of sources and uses of cash are given below. Select on the line provided whether each is an operating, investing, or financing activity. -repayment of bond indebtedness

A) operating
B) investing
C) financing activity.

D) All of the above
E) B) and C)

Correct Answer

verified

Show Answer

Question 33

True/False

Review LaterAdd Note

When the net income is reconciled with the net cash provided by operating activities, depreciation expense is added to the net income.

When calculating the net cash provided by operating activities, a gain on the sale of equipment should:

The FASB requires companies to report the Statement of Cash Flows using the direct method.

An increase in accounts payable is:

On a statement of cash flows, an increase in a prepaid expense:

On the statement of cash flows, a $5,000 gain on the sale of investments would be:

Operating activities include:

A gain on the sale of equipment is reported in the -------------section of the statement of cash flows.

The Natural Company's cash balance at December 31, 2019, was $150,000. The following information was reported on the company's statement of cash flows for 2020: - The Natural Company's balance sheet would report the balance of Cash on December 31, 2020.

There is usually a difference between the net income reported on the income statement and the net cash from operating activities shown on the statement of cash flows.

For each of the following operating activities, select whether it is a source of cash, a use of cash, neither under the indirect method. -converting bonds to stock

Chattel Company sold equipment that originally cost $46,000 and accumulated depreciation in the amount of $38,200 for $8,000 cash. - What amount is reported in the Cash Flows from Investing Activities section of the Statement of Cash Flows for the sale of this equipment?

A list of sources and uses of cash are given below. Select on the line provided whether each is an operating, investing, or financing activity. -resale of Treasury Stock

Financing activities include all of the following except:

The statement of cash flows provides information about cash flows from operating activities, investing activities, and financing activities.

For each of the following operating activities, indicate whether it is a source of cash, a use of cash, neither under the indirect method. -----(a) decrease in Accounts Receivable -----(b) increase in Wages Payable -----(c) decrease in Taxes Payable -----(d) depreciation expense -----(e) loss on early redemption of bonds -----(f) converting bonds to stock

Noncash investing and financing activities, such as the issuance of bonds to acquire business property, do not require disclosure as the cash account is not affected.

For each of the following operating activities, select whether it is a source of cash, a use of cash or neither under the indirect method. -increase in Accounts Payable