Question 1

What effect does the following journal entry have on the amount of cash generated by operating activities?

Accepted Answer

A)  Decreases it
B)  Increases it
C)  Has no effect
D)  Cannot be determined from the information given

Question 2

Rapid growth of a company can cause it to be short of cash.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is the correct sequence for the major components of the Statement of Cash Flows?

Accepted Answer

A)  Operating,Investing,Financing.
B)  Investing,Operating,Financing.
C)  Operating,Financing,Investing.
D)  Financing,Investing,Operating.

Question 4

The following information is available for O'Hara Company for 2016.O'Hara uses the direct method to prepare its statement of cash flows.
a)What amount of cash was paid for the purchase of merchandise?
b)How will the amount computed in a)be shown on the Statement of Cash Flows?

Accepted Answer

a)$900,000 end.equip.- $850,000 beg.equi...

Question 5

Describe where on the Statement of Cash Flows one would find a noncash purchase of equipment.

Accepted Answer

Noncash purchases of equipment...

Question 6

The only difference between the direct and indirect methods of preparing the statement of cash flows is the manner in which the

Accepted Answer

A)  cash flows from operating activities is presented.
B)  cash flows from investing activities is presented.
C)  cash flows from financing activities is presented.
D)  the schedule of noncash items is presented.

Question 7

Use the following to answer questions
Erie Company reports the following comparative balance sheets and income statement information.
  
-The amount of cash revenue received from customers during 2016 was:

Accepted Answer

A)  $296,000.
B)  $264,000.
C)  $280,000.
D)  $248,000.

Question 8

A mortgage issued in exchange for a building would be reported on the statement of cash flows in the

Accepted Answer

A)  financing activity section.
B)  investing activity section.
C)  operating activity section.
D)  noncash financing and investing section.

Question 9

When using the indirect method to prepare the statement of cash flows,a decrease in current liabilities is:

Accepted Answer

A)  subtracted from current liabilities in the cash flows from financing activities section.
B)  subtracted from current assets in the cash flows from financing activities section.
C)  added to net income in the cash flows from operating activities section.
D)  added to inventory purchases in the cash flows from investing activities section.

Exam 12: Statement of Cash Flows

Use the following to answer questions Erie Company reports the following comparative balance sheets and income statement information. -The amount of cash revenue received from customers during 2016 was:

Correct Answer
verified

Which of the following is the correct sequence for the major components of the Statement of Cash Flows?

Correct Answer
verified

A mortgage issued in exchange for a building would be reported on the statement of cash flows in the

Correct Answer
verified

The following information is available for O'Hara Company for 2016.O'Hara uses the direct method to prepare its statement of cash flows. a)What amount of cash was paid for the purchase of merchandise? b)How will the amount computed in a)be shown on the Statement of Cash Flows?

Correct Answer
verified
a)$900,000 end.equip.- $850,000 beg.equi...
View Answer

What effect does the following journal entry have on the amount of cash generated by operating activities?

Correct Answer
verified

When using the indirect method to prepare the statement of cash flows,a decrease in current liabilities is:

Correct Answer
verified

The only difference between the direct and indirect methods of preparing the statement of cash flows is the manner in which the

Correct Answer
verified

Rapid growth of a company can cause it to be short of cash.

Correct Answer
verified

Describe where on the Statement of Cash Flows one would find a noncash purchase of equipment.

Correct Answer
verified
Noncash purchases of equipment...
View Answer

Exam 12: Statement of Cash Flows

Use the following to answer questions Erie Company reports the following comparative balance sheets and income statement information. -The amount of cash revenue received from customers during 2016 was:

Correct AnswerverifiedShow Answer

Which of the following is the correct sequence for the major components of the Statement of Cash Flows?

Correct AnswerverifiedShow Answer

A mortgage issued in exchange for a building would be reported on the statement of cash flows in the

Correct AnswerverifiedShow Answer

The following information is available for O'Hara Company for 2016.O'Hara uses the direct method to prepare its statement of cash flows. a)What amount of cash was paid for the purchase of merchandise? b)How will the amount computed in a)be shown on the Statement of Cash Flows?

Correct Answerverifieda)$900,000 end.equip.- $850,000 beg.equi...View AnswerShow Answer

What effect does the following journal entry have on the amount of cash generated by operating activities?

Correct AnswerverifiedShow Answer

When using the indirect method to prepare the statement of cash flows,a decrease in current liabilities is:

Correct AnswerverifiedShow Answer

The only difference between the direct and indirect methods of preparing the statement of cash flows is the manner in which the

Correct AnswerverifiedShow Answer

Rapid growth of a company can cause it to be short of cash.

Correct AnswerverifiedShow Answer

Describe where on the Statement of Cash Flows one would find a noncash purchase of equipment.

Correct AnswerverifiedNoncash purchases of equipment...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
a)$900,000 end.equip.- $850,000 beg.equi...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Noncash purchases of equipment...
View Answer