ACC 557 Week 10, Quiz - Graded 100% Latest Version.docx

ACC 557 Week 10, Quiz - Graded 100% Latest V 1. Which one of the following affects cash during a period? A). Payment of an accounts payable B). Recording depreciation expense C). Write-off of an uncollectible account receivable D). Declaration of a cash dividend 2. Land acquired from the issuance of common stock is reported A). as a financing activity. B). in a separate schedule at the bottom of the statement. C). as an investing activity. D). as an operating activity. 3. The information to prepare the statement of cash flows usually comes from each of the following except A). the comparative balance sheet. B). the current income statement. C). the retained earnings statement. D). additional information. 4. The statement of cash flows will not report the A). amount of checks outstanding at the end of the period. B). change in the cash balance for the current period. C). sources of cash in the current period. D). uses of cash in the current period. 5. Starting with net income and adjusting it for items that affected reported net income but which did not affect cash is called the A).cost-benefit method. B). direct method. C). indirect method. D). working capital method 6. In developing the cash flows from operating activities, most companies in the U. S. A). prepare the operating activities section on the accrual basis. B). use the direct method. C). use the indirect method. D). present both the indirect and direct methods in their financial reports. 7. 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 A). $489,000. B). $183,000. C). $363,000. D). $273,000 8. Each of the following items may be classified as operating or financing activities under IFRS except A). dividends paid. B). dividends received. C). interest paid. D). All of these may be classified as such. 9. Accounts receivable arising from sales to customers amounted to $45,000 and $50,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $160,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is A). $205,000. B). $155,000. C). $165,000. D). $160,000 10. The statement of cash flows will not provide insight into A). whether cash flow is greater than net income. B). why dividends were not increased. C). the exact proceeds of a future bond issue. D). how the retirement of debt was accomplished. 11. Which one of the following items is not necessary in preparing a statement of cash flows? A). Determine the cash in all bank accounts B). Determine the change in cash C). Determine the cash provided by operations D). Determine cash from financing and investing activities 12. If a company reports a net loss, it A). will not be able to pay cash dividends. B). may still have a net increase in cash. C). will not be able to get a loan. D). will not be able to make capital expenditures. 13. In Flagg Company, net income is $280,000. If accounts receivable increased $145,000 and accounts payable decreased $50,000, net cash provided by operating activities using the indirect method is: A). $475,000. B). $185,000. C). $85,000. D). $375,000. 14. The category that is generally considered to be the best measure of a company's ability to continue as a going concern is A). usually different from year to year. B). cash flows from operating activities. C). cash flows from investing activities. D). cash flows from financing activities. 15. Financing activities involve A). cash receipts from sales of goods and services. B). acquiring and disposing of productive long-lived assets. C). lending money to other entities and collecting on those loans. D). long-term liability and owners' equity items.