WorksheetsABM 12
Total questions: 20
Worksheet time: 6mins
The statement of cash flows is not one of the basic financial statements.
TRUE
FALSE
The statement of cash flows is an optional financial statement.
TRUE
FALSE
The statement of cash flows shows the effects on cash of a company's operating, investing, and marketing activities.
TRUE
FALSE
The statement of cash flows reports a firm's major sources of cash receipts and major uses of cash for a period of time.
TRUE
FALSE
The statement of cash flows reports a firm's major sources of cash receipts and major uses of cash for a period of time.
TRUE
FALSE
The statement of cash flows reports a firm's major sources of cash receipts and major uses of cash for a period of time.
TRUE
FALSE
Under the direct method of reporting cash flows from operations, the primary source of cash is cash received from customers.
TRUE
FALSE
Cash outflows from financing activities include the payment of cash dividends, the acquisition of treasury stock, and the repayment of amounts borrowed.
TRUE
FALSE
Cash outflows from financing activities include the payment of cash dividends, the acquisition of treasury stock, and the repayment of amounts borrowed.
TRUE
FALSE
In preparing the statement of cash flows, the correct order of reporting cash activities is operating, financing and investing.
TRUE
FALSE
Which of the following can be found on the statement of cash flows?
a. cash flows from operating activities
b. total assets
c. total changes in stockholders' equity
d. changes in retained earnings
On the statement of cash flows, the cash flows from operating activities section would include
a. receipts from the issuance of capital stock
b. receipts from the sale of investments
c. payments for the acquisition of investments
d. cash receipts from sales activities
Cash paid to purchase long-term investments would be reported in the statement of cash flows in
a. the cash flows from operating activities section
b. the cash flows from financing activities section
c. the cash flows from investing activities section
d. a separate schedule
Which of the following does not represent an outflow of cash and therefore would not be reported on the statement of cash flows as a use of cash?
a. purchase of noncurrent assets
b. purchase of treasury stock
c. discarding an asset that had been fully depreciated
d. payment of cash dividends
Which of the following represents an inflow of cash and therefore would be reported on the statement of cash flows?
a. retirement of bond payable
b. acquisition of treasury stock
c. declaration of stock dividends
d. issuance of long-term debt
A ten-year bond was issued at par for $250,000 cash. This transaction should be shown on a statement of cash flows under
a. investing activities
b. financing activities
c. noncash investing and financing activities
d. operating activities
The last item on the statement of cash flows prior to the schedule of noncash investing and financing activities reports
a. the increase or decrease in cash
b. cash at the end of the year
c. net cash flow from investing activities
d. net cash flow from financing activities
Which of the following should be shown on a statement of cash flows under the financing activities section?
a. the purchase of a long-term investment in the common stock of another company
b. the payment of cash to retire a long-term note
c. the proceeds from the sale of a building
d. the issuance of a long-term note to acquire land
The statement of cash flows is not useful for
a. planning future investing and financing activities
b. determining a company’s ability to pay its debts
c. determining a company’s ability to pay dividends
d. calculating the net worth of a company
Financing activities include
a. lending money
b. acquiring investments
c. issuing debt
d. acquiring long-lived assets
