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WorksheetsChap 17 MC
Total questions: 61
Worksheet time: 31mins
37. The statements of cash flows should help investor and creditors assess each of the following except the
entity's ability to generate future income
entity's ability to pay dividends
reasons for the difference between income and net cash provided by operating activities
cash investing and financing transactions during the period
38. The statement of cash flows
must be prepared on a daily basis
summarizes the operating, financing, and investing activity of an entity
is another name for the income statement
is a special section of the income statement
39. Which one of the following items is not generally used in preparing a statement of cash flows?
adjusted trial balance
comparative balance sheets
current income statements
additional information
40. The primary purpose of the statement of cash flows is to
provide information about investing and financing activities during a period
prove that revenues exceed expenses if there is a net income
provide information about the cash receipts and cash payments during a period
facilitate banking relationships
41. If a company reports a net loss, it
may still have a net cash increase in cash
will not be able to pay cash dividends
will not be able to get a loan
will not be able to make capital expenditures
42. In addition to the three basic financial statements, which of the following is also a required financial statement
the cash budget
the statement of cash flows
the statement of cash flows and out flows
the cash reconcilliation
43. The statement of cash flows will not report the
amount of checks outstanding at the end of the period
sources of cash in the current period
uses of cash in the current period
change in the cash balance for the current period
44. Cash equivalents do not include
short term corporate notes
treasury bills
money market funds
2-year certificates of deposit
45. Which of the following characteristics does not apply to cash equivalents
short term
highly liquid
readily convertible into cash
sensitive to interest rate changes
46. Cash equivalents are generally investments with maturities of
$1000 or more
three months or less
at least six months
one year or the operating cycle, whichever is less
47. The best measure of a company's ability to generate sufficient cash to continue as a going concern is net cash provided by
financing activities
investing activities
operating activities
processing activities
48. The acquisition of land by issuing common stock is
Việc mua lại đất bằng cách phát hành cổ phiếu phổ thông là
a noncash transaction which is not reported in the body of a statement of cash flows
a cash transaction and would be reported in the body of a statement of cash flows
a noncash transaction and would be reported in the body of a statement of cash flows
only reported if the statement of cash flows is prepared using the direct method
50. Financing activities involve
lending money
acquiring investments
issuing debt
acquiring long-lived assets
51. Investing activities include
collecting cash on loans made
obtaining cash from creditors
obtaining capital from owners
repaying money previously borrowed
52. Generally, the most important category on the statements of cash flows is cash flows from
operating activities
investing activities
financing activities
significant noncash activities
53. The category that is generally considered to be the best measure of a company's ability to continue as a going concern is
operating
investing
financing
from year to year
54. Cash receipts from interest and dividends are classified as
financing
investing
operating
either financing or investing activities
55. Each of the following is an example of a significant noncash activity except
conversion of bonds into common stock
exchanges of plant assets
issuance of debt to purchase assets
stock dividends
56. If a company has both an inflow and outflow of cash related to property, plant, and equipment, the
two cash effects can be netted and presented as one item in the investing activities section
cash inflow and cash outflow should be reported separately in the investing activities section
two cash effects can be netted and presented as one item in the financing activities section
cash inflow and cash outflow should be separately in the financing activities
57. Of the items below, the one that appears first on the statements of cash flows is a
noncash investing and financing activities
net increase (decrease) in cash
cash at the end of the period
cash at the beginning of the period
58. Which of the following transactions does not affect cash during a period
write off of an uncollectible account
collection of an accounts receivable
sale of treasury stock
exercise of the call option on bonds payable
59. Significant noncash transactions would not include
conversion of bonds into common stock
asset acquisition through bond issuance
treasury stock acquisition
exchange of plant assets
60. In preparing a statement of cash flows, a conversion of bonds into common stock will be reported in
Khi lập báo cáo lưu chuyển tiền tệ, việc chuyển đổi trái phiếu thành cổ phiếu phổ thông sẽ được báo cáo trong
the financing section
the extraordinary section
a separate schedule or note to the financial statements
the stockholders' equity section
Assume the indirect method is used:
61. Paid income taxes
operating
financing
investing
non
Assume the indirect method is used:
62. Issued common stock for cash:
operating
financing
investing
non
Assume the indirect method is used:
63. Purchased land for cash
operating
investing
financing
none
Assume the indirect method is used:
64. Purchased land and building with a mortgage
operating
financing
investing
non
80. Which one of the following items is not necessary in preparing a statement of cash flows
Determine the change in cash
Determine the cash provided by operations
Determine cash from financing and investing activities
Determine the cash in all bank accounts
81. If accounts receivable have increased during the period
revenues on an accrual basis are less than revenues on a cash basis
revenues on an accrual basis are greater than revenues on a cash basis
revenues on an accrual basis are the same as revenues on a cash basis
revenues on an accrual basis are greater than expenses on a cash basis
82. If accounts payable have increased during a period
revenues on an accrual basis are less than revenues on a cash basis
revenues on an accrual basis are less than expenses on a cash basis
revenues on an accrual basis are greater than expenses on a cash basis
expenses on an accrual basis are the same as expenses on a cash basis
82. If accounts payable have decreased during a period
revenues on an accrual basis are less than revenues on a cash basis
revenues on an accrual basis are less than expenses on a cash basis
revenues on an accrual basis are greater than expenses on a cash basis
expenses on an accrual basis are the same as expenses on a cash basis
81. If accounts receivable have decreased during the period
revenues on an accrual basis are less than revenues on a cash basis
revenues on an accrual basis are greater than revenues on a cash basis
revenues on an accrual basis are the same as revenues on a cash basis
revenues on an accrual basis are greater than expenses on a cash basis
83. Which one of the following affects cash during a period
Recording depreciation expense
Declaration of a cash dividend
Write off of an uncollectible account receivable
Payment of an account payable
84. In calculating cash flows from operating activities using the indirect method, a gain on the sale of equipment is
added to net income
deducted from net income
ignored because it does not affect cash
not reported on a statement of cash flows
87. Starting with net income and adjusting it for items that affected reported net income but which did not affect cash is called the
direct method
indirect method
working capital method
cost-benefit method
88. In calculating net cash provided by operating activities using the indirect method, an increase in prepaid expenses during a period is
deducted from net income
added to net income
ignored because it does not affect income
ignored because it does not affect expense
89. In developing the cash flows from operating activities, most companies in the US
use direct method
use indirect
present both the indirect and direct
prepare the operating activities sections on the accrual basis
91. Each of the following is added to the net income in computing net cash provided by operating activities except
amortization expense
an increase in accrued expenses payable
a gain on sale of equipment
a decrease in inventory
92. Which of the following would be subtracted from net income using the indirect method
depreciation expense
an increase in account receivable
an increase in accounts payable
a decrease in accounts payable
93. Which of the following would be added to net income using the indirect method
an increase in accounts receivable
an increase in prepaid expenses
depreciation expense
a decrease in account payable
94. Which of the following would not be an adjustment to net income using the indirect method
depreciation expense
an increase in prepaid insurance
amortization exp
an increase in Land
95. In calculating cash flows from operating activities using indirect method, a loss on the sale of equipment will appear as a
subtraction from net income
addition to net income
addition to cash flow from investing
subtraction from investing
98. Which of the following adjustments to convert net income to net cash provided by operating activities is not added to net income
gain on sale of equipment
depreciation expense
patent amortization expense
depletion expense
99. Using the indirect method, if the equipment is sold at a gain, the
sale proceeds received are deducted in the operating activities section
sale proceeds received are added in the operating activities section
amount of the gain is added in the operating activities section
amount of the gain is deducted in the operating activities section
101. On the statement of cash flows using the indirect method, patent amortization expense will
be added to net income in the operating section
be deducted from net income in the operating section
appear as an inflow of cash in the investing section
appear as an outflow of cash in the investing section
102. The indirect and direct methods of preparing the statement of cash flows are identical except for the
Các phương pháp gián tiếp và trực tiếp để lập báo cáo lưu chuyển tiền tệ là giống nhau ngoại trừ phương pháp
significant noncash activity section
operating activities section
investing activities section
financing activities section
103. Land acquired from the issuance of common stock is reported
as a financing activity
as an investing activity
as operating
in a separated schedule at the bottom of the statement
106. The statement of cash flows
is prepared instead of an income statement under GAAP
is used to assess an entity's ability to pay dividends and meet obligations
is prepared from comparative income statements
reflects earnings per share figures on a cash basis on an accrual basis in the body of the statement
107. In preparing the statement of cash flows, determining the net increase or decrease in cash requires the use of
the adjusted trial balance
the current period's balance sheet
a comparative balance sheet
a comparative income statement
108. To determine the net cash provided (used) by operating activities, it is necessary to analyze
the current year' s income statement
a comparative balance sheet
additional information
all
109. Which of the following would not be needed to determine net cash provided by operating activities
depreciation expense
change in accounts receivable
payment of cash dividends
change in prepaid expense
110. When equipment is sold for cash, the amount received is reflected as a cash
inflow in the operating section
inflow in the financing section
inflow in the investing section
outflow in the operating section
111. The statement of cash flows will not provide insight into
why dividends were not increased
whether cash flow is greater than net income
the exact proceeds of a future bond issue
how the retirement of debt was accomplished
112. Which of the following transactions would not be classified as a financing activity
purchase of treasury stock
payment of dividends
issuance of bonds at a discount
purchase of a long term investment in bonds
113. A measure that describes the cash remaining from operations after adjustment for capital expenditures and dividends is
adjusted cash from operations
cash provided by operations
free cash flow
net cash provided by operating activities
114. Free cash flow equals cash provided by
operation less capital expenditures and cash dividends
operations less cash dividends
investing activities less capital expenditure and cash dividends
operations less capital expenditures
116*. When listing accounts in the statements of cash flows worksheet, the accumulated depreciation account is shown
with accounts that have credit balances
with accounts that have debit balances
as a credit under the reconciling items
as a debit under the reconciling items
117. In the bottom portion of the statements of cash flows worksheet
inflows of cash are debits in the reconciling columns
outflows of cash are debits in the reconciling columns
information pertaining to investing and financing activities only is entered
only significant noncash transactions are entered.
118. On the statement of cash flows worksheet
significant noncash investing and financing activities are not entered in the reconciling columns
a decrease in cash will be offset by debit in the reconciling items columns at the bottom of the worksheet
an increase in cash will be offset by debit in the reconciling items column at the bottom of the worksheet
income statement accounts are listed after balance sheet accounts in the top half of the worksheet under the indirect method
119*. Each of the following would be reported under operating activities except cash receipts
from sales of goods
from sales of investments
of interest on loans
of dividends from investment
120*. Which of the following statement concerning the statement of cash flows is true
The statement of cash flows is usually more accurate when using the indirect method
If the direct method is used, a supplementary schedule reconciling the net income to a net cash from operating activities must be provided
The statement of cash flows reflects both earnings per share and cash per share
The statement of cash flows is an optional financial statement for external reporting purposes
