Reference no: EM13491988

Indicate where the event purchased land and a building with a mortgage would appear, if at all, on the indirect statement of cash flows.

Does not represent a cash flow
Investing activities section
Operating activities section
Financing activities section

Of the items below, the one that appears first on the statement of cash flows is
net increase (decrease) in cash.
cash at the end of the period.
cash at the beginning of the period.
Non cash investing and financing activities.

If a company has both an inflow and outflow of cash related to property, plant, and equipment, the
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 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 reported separately in the financing activities section.

Which of the following would be subtracted from net income using the indirect method?
A decrease in prepaid expenses
An increase in accounts receivable
Depreciation expense
An increase in accounts payable

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 Inflows and Outflows
the "Cash Reconciliation"

Under IFRS, bank overdrafts are classified as
financing activities.
operating activities.
cash and cash equivalents.
investing activities.

Joan's Vegetable Market had the following transactions during 2013:
1. Issued $50,000 of par value common stock for cash.
2. Repaid a 6 year note payable in the amount of $22,000.
3. Acquired land by issuing common stock of par value $100,000.
4. Declared and paid a cash dividend of $2,000.
5. Sold a long-term investment (cost $63,000) for cash of $6,000.
6. Acquired an investment in IBM stock for cash of $12,000.

What is the net cash provided by investing activities?
$6,000
($6,000)
$12,000
$32,000

Blocker Company reported a net loss of $5,000 for the year ended December 31, 2013. During the year, accounts receivable increased $14,000, merchandise inventory decreased $10,000, accounts payable decreased by $20,000, and depreciation expense of $10,000 was recorded. During 2013, operating activities
used net cash of $19,000.
used net cash of $27,000.
provided net cash of $27,000.
provided net cash of $17,000

Which of the following adjustments to convert net income to net cash provided by operating activities is not added to net income?
Patent Amortization Expense
Depreciation Expense
Depletion Expense
Gain on Sale of Equipment

Which of the following transactions does not affect cash during a period?
Sale of treasury stock
Collection of an accounts receivable
Write-off of an uncollectible account
Exercise of the call option on bonds payable

Carrot Company issued common stock for proceeds of $381,000 during 2013. The company paid dividends of $90,000 and issued a long-term note payable for $95,000 in exchange for equipment during the year. The company also purchased treasury stock that had a cost of $18,000. The financing section of the statement of cash flows will report net cash inflows of
$183,000.
$273,000.
$489,000.
$363,000.

Which of the following adjustments to convert net income to net cash provided by operating activities is correct?
Add to Net IncomeDeduct from Net Income
Taxes Payable decrease increase
Inventory decrease increase
Accounts Receivableincrease decrease
Prepaid Expensesincrease decrease

Each of the following are particularly interested in the statement of cash flows except
creditors.
employees.
shareholders.
government agencies

The statement of cash flows is prepared from all of the following except
the adjusted trial balance.
the current income statement.
selected transaction data.
comparative balance sheets.

The following data are available for Nemo Corporation.
Sale of land $250,000
Sale of equipment 125,000
Issuance of common stock 140,000
Purchase of equipment60,000
Payment of cash dividends 120,000

Net cash provided by investing activities is:
$455,000.
$315,000.
$335,000.
$260,000.