FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 12: Reporting Cash Flows

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

Multiple Choice

Review LaterAdd Note

Review Later

A company had average total assets of $1,660,000, total cash flows of $1,320,000, cash flows from operations of $205,000, and cash flows from financing of $750,000. The cash flow on total assets ratio equals:

A) 45.2%.
B) 22.0%.
C) 11.65%.
D) 12.3%.
E) 79.5%.

Correct Answer

verified

Show Answer

Question 22

Multiple Choice

Review LaterAdd Note

Review Later

Preparation of the statement of cash flows does not involve:

A) Computing the net increase or decrease in cash.
B) Computing and reporting net cash provided or used by operations.
C) Computing the profit compared to the net increase or decrease in cash.
D) Computing and reporting net cash provided or used by financing activities.
E) Computing and reporting net cash provided or used by investing activities.

Correct Answer

verified

Show Answer

Question 23

Multiple Choice

Review LaterAdd Note

Northeast Inc. is preparing the company's statement of cash flows for the fiscal year just ended. Using the following information, determine the amount of cash flows from investing activities:

A machine with a cost of $130,000 and accumulated depreciation of $85,000 is sold for $50,000 cash. The amount that should be reported as a source of cash under cash flows from investing activities is:

Cash paid for merchandise is an operating activity.

The purchase of equity securities is classified as an investing activity.

Define the cash flow on total assets ratio and explain how it is used to evaluate cash flows and to assess company performance.

Explain how cash flows from investing and financing activities are determined.

The accountant for Sysco Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available: What is the amount of cash dividends paid that should be reported in the financing section of the statement of cash flows?

The direct method separately lists operating cash receipts, such as cash received from customers.

To be classified as a cash equivalent, the only criterion an item must meet is that it must be readily convertible to a liquid asset.

The cash flow on total assets ratio is not affected by accounting recognition and measurement.

When using the indirect method to calculate and report net cash provided or used by operating activities, which of the following is subtracted from net income?

The accountant for Walter Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available: The amount of cash dividends paid during the year would be:

Financing activities include receiving cash from issuing debt and receiving cash dividends from investments in other companies' stocks.

In preparing a company's statement of cash flows using the indirect method, the following information is available: Net cash provided by operating activities was:

Describe the format of the statement of cash flows, including the reporting of significant noncash investing and financing activities.

The direct method for the preparation of the operating activities section of the statement of cash flows:

Atom Corporation paid cash dividends totaling $75,000 during its most recent fiscal year. How should this information be reported on Atom's statement of cash flows?

All of the following are true regarding the statement of cash flows except: