Acc101 final 2

QN=267 Which of the following will be presented in a direct Cashflow Statement?

• a. Depreciation expense

• b. Decreases in Prepaid expenses

• c. Loss in disposal of asset

• d. Cash paid to suppliers

• e. Increases in account payable

QN=268 How are NSF checks adjusted in Bank reconciliation statement?

• a. Deducted from Bank statement balance

• b. Added to Bank statement balance

• c. Deducted from accounting book balance

• d. Added to accounting book balance

• e. None of these

QN=269 An example of an operating activity is:

• a. Paying wages

• .b. Purchasing office equipment.

• c. Borrowing money from a bank

• d. Selling stock

• e. Paying off a loan.

QN=270 A company acquires equipment for $75,000 cash. This represents a(n):

• a. Operating activity.

• b. Investing activity

• c. Financing activity

• d. Revenue activity

• e. Expense activity.

QN=271 Operating activities:

• a. Are the means organizations use to pay for resources like land, buildings and equipment

• b. Involve using resources to research, develop, purchase, produce, distribute and market products and services.

• c. Involve acquiring and disposing of resources that a business uses to acquire and sell its products or services

• d. Are also called asset management.e. Are also called strategic management.

QN=272 Income statement and Balance sheet

• a. Report effects of cash-relating transactions

• b. Do not explain the changes in cash during the period

• c. Record sources and uses of cash during the period

• d. Are classified into operating activities, investing activities and financing activities.

• e. None of these

QN=273 Which of the following will be presented in a direct Cashflow Statement?

• a. Bad debt expense

• b. Increases in Prepaid expenses

• c. Gain in disposal of asset

• d. Cash received from customers

• e. Increases in account receivable

QN=274 How are interests earned from depositing in bank adjusted in Bank reconciliation statement?

• a. Deducted from Bank statement balance

• b. Added to Bank statement balance

• c. Deducted from accounting book balance

• d. Added to accounting book balance

• e. None of these

QN=275 A company borrows $125,000 from the Eastside Bank and receives the loan proceeds in cash. This represents a(n):

• a. Operating activity

• b. Investing activity

• c. Financing activity

• d. Revenue activity

• e. Expense activity.

QN=276 Flash had cash inflows from operations $62,500; cash outflows from investing activities of $47,000; and cash inflows from financing of $25,000. The net change in cash was:

• a. $40,500 increase.

• b. $40,500 decrease

• c. $134,500 decrease

• .d. $134,000 increase

• e. $9,500 increase