Assignment
Question 1
Which of the following is incorrect about the Statement of Cash Flows?
It is a fourth basic financial statement.
It provides information about cash receipts and cash payments of an entity during a period.
It reconciles the ending cash account balance to the balance per the bank statement.
It provides information about the operating, investing, and financing activities of the business.
Question 2
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.
Question 3
Which is an example of a cash flow from an investing activity?
Receipt of cash from the issuance of bonds payable.
Payment of cash to repurchase outstanding capital stock.
Receipt of cash from the sale of equipment.
Payment of cash to suppliers for inventory.
Question 4
Which is an example of a cash flow from a financing activity?
Receipt of cash from sale of land.
Issuance of debt for cash.
Purchase of equipment for cash.
None of the above
Question 5
Which of the following is not an operating activity?
Payment of taxes.
Dividends received.
Payment of a cash dividend.
Payment to suppliers.
Question 6
Cash flow activities that include acquiring and disposing of investments and property, plant, and equipment are classified as
operating activities.
investing activities.
financing activities.
noncash activities.
Question 7
Cash flow activities that include obtaining cash from issuing debt and repaying the amounts borrowed are classified as
operating activities.
investing activities.
financing activities.
non-cash activities.
Question 8
Operating activities include cash outflows to
purchase property and equipment.
purchase debt or equity securities.
make loans to other entities.
suppliers for inventory.
Question 9
Accounts receivable arising from sales to customers amounted to $80,000 and $70,000 at the beginning and end of the year, respectively. Income reported on the Income Statement for the year was $240,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the Statement of Cash Flows is
$240,000.
$250,000.
$310,000.
$230,000.
Question 10
Assume a company sold a piece of equipment for $3,000. The original cost was $15,000 and the accumulated depreciation prior to the sale was $10,000. What amount, if any, would appear in the operating activities section of the Statement of Cash Flows using the indirect method?
$0.
$2,000.
$3,000.
$15,000.