General Accounting Cash Flow MCQs

1. Equity in the undistributed earnings of a recognized affiliate would appear in which of the following sections of the cash flow statement?

2. Which of the following would be shown in the investing section of a cash flow statement?

3. In 2007, XYZ Company had a net loss of $160,000 and reported the following: Dividends paid: $40,000 Depreciation expense: $30,000 Increase in accounts payable: $15,000 Issuance of stock: $100,000 Retirement of debt: $50,000 Given this data, the amount of cash flow from operations was ______________.

4. Dividends paid for the year would appear in which of the following sections of the cash flow statement?

5. Equity income from an affiliate would be shown _____________________.

6. Issuing ten-year bonds will cause cash to ______________ .

7. A cash flow statement is typically prepared _____________________.

8. Which of the following would be shown in the investing section of a cash flow statement?

9. The sale of equipment for cash with a recognized loss would appear in which of the following sections of the cash flow statement?

10. An increase in the accounts payable balance would appear in which of the following sections of the cash flow statement?

11. Pre-paying a one-year insurance policy will cause cash to ______________ .

12. Warranties payable that increased during the year would appear in which of the following sections of the cash flow statement?

13. The acquisition of a building and/or land by entering into a lease that meets the capital lease criteria would appear in which of the following sections of the cash flow statement?

14. Depreciation recorded on equipment would appear in which of the following sections of the cash flow statement?

15. Cash borrowed from a bank by issuing a short-term note payable would appear in which of the following sections of the cash flow statement?

16. Collecting receivables will cause cash to ______________ .

17. In 2007, XYZ Company had a net income of $150,000 and reported the following: Depreciation expense: $21,000 Issuance of debt: $120,000 Loss on sale of equipment: $23,000 Purchase of building: $110,000 Increase in inventory: $12,000 Given this data, the amount of cash flow from operations was ______________.

18. Preferred stock issued for cash would appear in which of the following sections of the cash flow statement?

19. The most popular method of presenting cash from operations in a cash flow statement is the _________________.

20. The amortization of a recorded patent would appear in which of the following sections of the cash flow statement?

21. Preferred stock converted into common stock would appear in which of the following sections of the cash flow statement?

22. An amortization of a bond discount would be shown __________________.

23. When determining cash flow from operations, which of the following would NOT be deducted from net income?

24. Which of the following statements about depreciation expense is true?

25. An investment in the stock of another company would appear in which of the following sections of the cash flow statement?

26. Which of the following typically happens during the maturation phase of a product's life cycle?

27. Paying previously declared dividends will cause cash to ______________ .

28. Treasury stock purchased for cash would appear in which of the following sections of the cash flow statement?

29. The use of a bond sinking fund to retire a long-term debt at maturity would appear in which of the following sections of the cash flow statement?

30. When determining cash flow from operations, which of the following would be added back to net income?

31. XYZ reported balances in the Accumulated Depreciation account of $130,000 on 01/01/07 and $120,000 on 12/31/07. During 2007, an asset costing $100,000 (with an accumulated depreciation of $80,000) was sold for $20,000. Given this data, the depreciation expense for 2007 was _____________.

32. A payment made from accounts payable will cause cash to ______________ .

33. Cash paid for land would be shown as ________________.

34. Declaring dividends will cause cash to ______________ .

35. Amortized discount on bonds payable would appear in which of the following sections of the cash flow statement?

36. In 2007, XYZ Company had a net income of $100,000 and reported the following account changes on its balance sheet: Accounts Receivable: $6,000 increase Accounts Payable: $2,000 increase Building: $8,000 decrease Accumulated Depreciation: $3,000 increase Bonds Payable: $16,000 increase Given this data, the amount of cash flow from operations was ______________.

37. At the beginning and end of 2007, XYZ Company reported the following balances for Bonds Payable: Jan 1: $100,000 Dec 31: $140,000 In addition, $60,000 In bonds was retired In 2007. Given the above data, the amount of Bonds Payable issued during the year was ______________.

38. Deferred income tax payable that increased during the year would appear in which of the following sections of the cash flow statement?

39. Recording a depreciation expense will cause cash to ______________ .

40. A cash payment for land acquisition would appear in which of the following sections of the cash flow statement?

41. Which of the following typically happens during the growth phase of a product's life cycle?

42. When determining cash flow from operations, which of the following would be a deduction from net income?

43. Which of the following would be shown in the financing section of a cash flow statement?

44. Salaries paid during the year would appear in which of the following sections of the cash flow statement?

45. Long-term investments sold for cash with a recognized gain would appear in which of the following sections of the cash flow statement?

46. Which of the following would be included in the investing section of a cash flow statement?

47. In most countries, the preparation of a __________________ is a common practice.

48. On their income statement, XYZ Company reported $600,000 in sales, $320,000 in depreciation expense, $60,000 in income taxes, and $100,000 in other expenses. In addition, $80,000 of common stock was issued for cash during the year. Assuming that the company's non-cash working capital balances did not change during the year, the total amount of cash from operations was ____________.

49. Accounts receivable that increased during the year would appear in which of the following sections of the cash flow statement?

50. Unearned revenue that had been reduced during the year would appear in which of the following sections of the cash flow statement?

51. In determining cash flow from operations, which of the following would be an add-back to net income?

52. Accruing an income tax liability will cause cash to ______________ .

53. Prepaid rent that increased during the year would appear in which of the following sections of the cash flow statement?

54. Cash received from sale of investment would be shown on a cash flow statement as ___________.

55. During 2007, XYZ Company experienced the following changes: Current liabilities: $75,000 increase Non-current liabilities: $45,000 decrease Owners' equity: $51,000 decrease Non-current assets: $42,000 increase Current assets (other than Cash): $18,000 increase Given the above data, the change in cash for 2007 was ____________.

56. The acquisition of a patent would be shown __________________.

57. Land acquired by issuing preferred stock would appear in which of the following sections of the cash flow statement?

58. When determining cash flow from operations, which of the following would NOT be added back to net income?

59. Which of the following is NOT a characteristic of growing firms?

60. Which of the following typically happens during the introduction phase of a product's life cycle?

61. On a cash flow statement, depreciation expense ________________.

62. The major components of a cash flow statement are ________________________.

63. Which of the following statements does NOT illustrate a proper interpretation of information in a cash flow statement?

64. Paying cash to retire preferred stock will cause cash to ______________ .

65. When preparing cash flow statements, the practice of presenting cash from operations by listing all cash-generating revenues followed by all cash expenses is called the ______________.

66. In determining cash flow from operations, which of the following would be added to net income?

67. In 2007, XYZ Company had a net loss of $160,000 and reported the following: Dividends paid: $40,000 Depreciation expense: $30,000 Increase in accounts payable: $15,000 Issuance of stock: $100,000 Retirement of debt: $50,000 Given this data, the net change in cash for 2007 was ______________.

68. Which of the following would NOT be shown in the investing section of a cash flow statement?

69. Treasury stock sold for an amount greater than its repurchase price would appear in which of the following sections of the cash flow statement?

70. Acquisition of treasury stock would be shown _____________________.

71. Which of the following statements expresses the objective of a cash flow statement?

72. New equipment purchased by issuing a long-term note payable would appear in which of the following sections of the cash flow statement?

73. Purchasing inventory with a check will cause cash to ______________ .

74. XYZ Company reported the following information on its balance sheet: 01/01/07 Building: $800,000 Accumulated Depreciation: $200,000 12/31/07 Building: $785,000 Accumulated Depreciation: $225,000 In 2007, the company also purchased a building at a cost of $100,000. Considering the above data, did the company sell any building during the year, and if so, what was its original cost?

75. Cash received from the issue of debt would be shown as ____________________.

76. In 2007, XYZ Company had a net income of $312,000 and reported the following: Decrease in accounts receivable: $10,000 Gain on sale of building: $14,000 Increase in accounts payable: $12,000 Issuance of common stock: $90,000 Retirement of debt: $45,000 Given this data, the amount of cash flow from operations was ______________.

77. Which of the following transactions would be shown as a cash flow from financing?

78. Which of the following transactions would be shown on a cash flow statement, but does not affect cash?