Which of the following transactions would be shown on a cash flow statement, but does not affect cash?
Correct Answer:
Exchange of land for stock
Note: This Question is unanswered, help us to find answer for this one
Which of the following transactions would be shown as a cash flow from financing?
Correct Answer:
Cash paid for dividends
Note: This Question is unanswered, help us to find answer for this one
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 ______________.
Correct Answer:
$320,000
Note: This Question is unanswered, help us to find answer for this one
Cash received from the issue of debt would be shown as ____________________.
Correct Answer:
cash flow from financing
Note: This Question is unanswered, help us to find answer for this one
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?
Correct Answer:
Yes, and its original cost was $115,000.
Note: This Question is unanswered, help us to find answer for this one
Purchasing inventory with a check will cause cash to ______________ .
Correct Answer:
decrease
Note: This Question is unanswered, help us to find answer for this one
New equipment purchased by issuing a long-term note payable would appear in which of the following sections of the cash flow statement?
Correct Answer:
It would not appear on the statement.
Note: This Question is unanswered, help us to find answer for this one
Which of the following statements expresses the objective of a cash flow statement?
Correct Answer:
All of the above
Note: This Question is unanswered, help us to find answer for this one
Acquisition of treasury stock would be shown _____________________.
Correct Answer:
as an adjustment to net income for the difference in price paid versus the original issue price
Note: This Question is unanswered, help us to find answer for this one
Treasury stock sold for an amount greater than its repurchase price would appear in which of the following sections of the cash flow statement?
Correct Answer:
Operating section
Note: This Question is unanswered, help us to find answer for this one
Which of the following would NOT be shown in the investing section of a cash flow statement?
Correct Answer:
All of the above are shown in the investing section of a cash flow statement
Note: This Question is unanswered, help us to find answer for this one
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 ______________.
Correct Answer:
($105,000)
Note: This Question is unanswered, help us to find answer for this one
In determining cash flow from operations, which of the following would be added to net income?
Correct Answer:
Increased accounts payable
Note: This Question is unanswered, help us to find answer for this one
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 ______________.
Correct Answer:
direct method
Note: This Question is unanswered, help us to find answer for this one
Paying cash to retire preferred stock will cause cash to ______________ .
Correct Answer:
decrease
Note: This Question is unanswered, help us to find answer for this one
Which of the following statements does NOT illustrate a proper interpretation of information in a cash flow statement?
Correct Answer:
Capital-intensive firms would likely show a substantially smaller add-back to net income for depreciation than service firms would show.
Note: This Question is unanswered, help us to find answer for this one
The major components of a cash flow statement are ________________________.
Correct Answer:
cash flow from operations, cash flow from investing, and cash flow from financing
Note: This Question is unanswered, help us to find answer for this one
On a cash flow statement, depreciation expense ________________.
Correct Answer:
should be added to net income when determining cash provided by operations
Note: This Question is unanswered, help us to find answer for this one
Which of the following typically happens during the introduction phase of a product's life cycle?
Correct Answer:
All of the above
Note: This Question is unanswered, help us to find answer for this one
Which of the following is NOT a characteristic of growing firms?
Correct Answer:
Reporting in the cash flow statement a deduction adjustment to net income for change in deferred taxes
Note: This Question is unanswered, help us to find answer for this one
When determining cash flow from operations, which of the following would NOT be added back to net income?
Correct Answer:
Equity in affiliate's losses
Note: This Question is unanswered, help us to find answer for this one
Land acquired by issuing preferred stock would appear in which of the following sections of the cash flow statement?
Correct Answer:
It would not appear on the statement.
Note: This Question is unanswered, help us to find answer for this one
The acquisition of a patent would be shown __________________.
Correct Answer:
in the investing section
Note: This Question is unanswered, help us to find answer for this one
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 ____________.
Correct Answer:
($81,000)
Note: This Question is unanswered, help us to find answer for this one
Cash received from sale of investment would be shown on a cash flow statement as ___________.
Correct Answer:
cash flow from investing
Note: This Question is unanswered, help us to find answer for this one
Prepaid rent that increased during the year would appear in which of the following sections of the cash flow statement?
Correct Answer:
Operating section
Note: This Question is unanswered, help us to find answer for this one
Accruing an income tax liability will cause cash to ______________ .
Correct Answer:
decrease
Note: This Question is unanswered, help us to find answer for this one
In determining cash flow from operations, which of the following would be an add-back to net income?
Correct Answer:
Loss on sale of building
Note: This Question is unanswered, help us to find answer for this one
Unearned revenue that had been reduced during the year would appear in which of the following sections of the cash flow statement?
Correct Answer:
Operating section
Note: This Question is unanswered, help us to find answer for this one
Accounts receivable that increased during the year would appear in which of the following sections of the cash flow statement?
Correct Answer:
Operating section
Note: This Question is unanswered, help us to find answer for this one
In most countries, the preparation of a __________________ is a common practice.
Correct Answer:
statement of sources and uses of funds
Note: This Question is unanswered, help us to find answer for this one
Which of the following would be included in the investing section of a cash flow statement?
Correct Answer:
Proceeds from sale of equipment
Note: This Question is unanswered, help us to find answer for this one
Long-term investments sold for cash with a recognized gain would appear in which of the following sections of the cash flow statement?
Correct Answer:
Operating section
Note: This Question is unanswered, help us to find answer for this one
Salaries paid during the year would appear in which of the following sections of the cash flow statement?
Correct Answer:
Operating section
Note: This Question is unanswered, help us to find answer for this one
Which of the following would be shown in the financing section of a cash flow statement?
Correct Answer:
All of the above
Note: This Question is unanswered, help us to find answer for this one
When determining cash flow from operations, which of the following would be a deduction from net income?
Correct Answer:
Increased accounts receivable
Note: This Question is unanswered, help us to find answer for this one
Which of the following typically happens during the growth phase of a product's life cycle?
Correct Answer:
Cash inflow exceeds cash outflow from financing activities.
Note: This Question is unanswered, help us to find answer for this one
A cash payment for land acquisition would appear in which of the following sections of the cash flow statement?
Correct Answer:
Investing section
Note: This Question is unanswered, help us to find answer for this one
Recording a depreciation expense will cause cash to ______________ .
Correct Answer:
show no change
Note: This Question is unanswered, help us to find answer for this one
Deferred income tax payable that increased during the year would appear in which of the following sections of the cash flow statement?
Correct Answer:
It would not appear on the statement.
Note: This Question is unanswered, help us to find answer for this one
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 ______________.
Correct Answer:
$100,000
Note: This Question is unanswered, help us to find answer for this one
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 ______________.
Correct Answer:
$99,000
Note: This Question is unanswered, help us to find answer for this one
Amortized discount on bonds payable would appear in which of the following sections of the cash flow statement?
Correct Answer:
Operating section
Note: This Question is unanswered, help us to find answer for this one
Declaring dividends will cause cash to ______________ .
Correct Answer:
show no change
Note: This Question is unanswered, help us to find answer for this one
Cash paid for land would be shown as ________________.
Correct Answer:
cash flow from investing
Note: This Question is unanswered, help us to find answer for this one
A payment made from accounts payable will cause cash to ______________ .
Correct Answer:
decrease
Note: This Question is unanswered, help us to find answer for this one
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 _____________.
Correct Answer:
$70,000
Note: This Question is unanswered, help us to find answer for this one
When determining cash flow from operations, which of the following would be added back to net income?
Correct Answer:
All of the above
Note: This Question is unanswered, help us to find answer for this one
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?
Correct Answer:
Operating section
Note: This Question is unanswered, help us to find answer for this one
Treasury stock purchased for cash would appear in which of the following sections of the cash flow statement?
Correct Answer:
Financing section
Note: This Question is unanswered, help us to find answer for this one
Paying previously declared dividends will cause cash to ______________ .
Correct Answer:
decrease
Note: This Question is unanswered, help us to find answer for this one
Which of the following typically happens during the maturation phase of a product's life cycle?
Correct Answer:
Cash inflow exceeds cash outflow from financing activities.
Note: This Question is unanswered, help us to find answer for this one
An investment in the stock of another company would appear in which of the following sections of the cash flow statement?
Correct Answer:
Financing section
Note: This Question is unanswered, help us to find answer for this one
Which of the following statements about depreciation expense is true?
Correct Answer:
All of the above statements are true.
Note: This Question is unanswered, help us to find answer for this one
When determining cash flow from operations, which of the following would NOT be deducted from net income?
Correct Answer:
Loss on sale of equipment
Note: This Question is unanswered, help us to find answer for this one
An amortization of a bond discount would be shown __________________.
Correct Answer:
as an add-back to net income when determining cash flow from operations
Note: This Question is unanswered, help us to find answer for this one
Preferred stock converted into common stock would appear in which of the following sections of the cash flow statement?
Correct Answer:
It would not appear on the statement.
Note: This Question is unanswered, help us to find answer for this one
The amortization of a recorded patent would appear in which of the following sections of the cash flow statement?
Correct Answer:
Operating section
Note: This Question is unanswered, help us to find answer for this one
The most popular method of presenting cash from operations in a cash flow statement is the _________________.
Correct Answer:
direct method
Note: This Question is unanswered, help us to find answer for this one
Preferred stock issued for cash would appear in which of the following sections of the cash flow statement?
Correct Answer:
Financing section
Note: This Question is unanswered, help us to find answer for this one
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 ______________.
Correct Answer:
$182,000
Note: This Question is unanswered, help us to find answer for this one
Collecting receivables will cause cash to ______________ .
Correct Answer:
increase
Note: This Question is unanswered, help us to find answer for this one
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?
Correct Answer:
Financing section
Note: This Question is unanswered, help us to find answer for this one
Depreciation recorded on equipment would appear in which of the following sections of the cash flow statement?
Correct Answer:
Operating section
Note: This Question is unanswered, help us to find answer for this one
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?
Correct Answer:
Financing section
Note: This Question is unanswered, help us to find answer for this one
Warranties payable that increased during the year would appear in which of the following sections of the cash flow statement?
Correct Answer:
Operating section
Note: This Question is unanswered, help us to find answer for this one
Pre-paying a one-year insurance policy will cause cash to ______________ .
Correct Answer:
decrease
Note: This Question is unanswered, help us to find answer for this one
An increase in the accounts payable balance would appear in which of the following sections of the cash flow statement?
Correct Answer:
Operating section
Note: This Question is unanswered, help us to find answer for this one
The sale of equipment for cash with a recognized loss would appear in which of the following sections of the cash flow statement?
Correct Answer:
Operating section
Note: This Question is unanswered, help us to find answer for this one
Which of the following would be shown in the investing section of a cash flow statement?
Correct Answer:
None of the above
Note: This Question is unanswered, help us to find answer for this one
A cash flow statement is typically prepared _____________________.
Correct Answer:
after both the balance sheet and the income statement are prepared
Note: This Question is unanswered, help us to find answer for this one
Issuing ten-year bonds will cause cash to ______________ .
Correct Answer:
increase
Note: This Question is unanswered, help us to find answer for this one
Equity income from an affiliate would be shown _____________________.
Correct Answer:
in the investing section
Note: This Question is unanswered, help us to find answer for this one
Dividends paid for the year would appear in which of the following sections of the cash flow statement?
Correct Answer:
Financing section
Note: This Question is unanswered, help us to find answer for this one
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 ______________.
Correct Answer:
($115,000)
Note: This Question is unanswered, help us to find answer for this one
Correct Answer:
None of the above
Note: This Question is unanswered, help us to find answer for this one
Correct Answer:
Operating section
Note: This Question is unanswered, help us to find answer for this one
Accounting Cash Flow MCQs | Topic-wise