Ch 6 (IFSA) Understanding the Cash Flow Statement

Question 1

___ provides information about a company’s cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company’s balance sheet.

Answer 1

The cash flow statement

Question 2

The cash flow statement provides information about a company’s ___ and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company’s balance sheet.

Answer 2

cash receipts

Question 3

The cash flow statement provides information about a company’s cash receipts and ___ during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company’s balance sheet.

Answer 3

cash payments

Question 4

The cash flow statement provides information about a company’s cash receipts and cash payments during an accounting period, showing how these cash flows link ___ shown on the company’s balance sheet.

Answer 4

the ending cash balance to the beginning balance

Question 5

The cash flow statement provides information about a company’s cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company’s ___.

Answer 5

balance sheet

Question 6

___ provided by the cash flow statement contrasts with the accrual-based information from the income statement.

Answer 6

The cash-based information

Question 7

The cash-based information provided by ___ contrasts with the accrual-based information from the income statement.

Answer 7

the cash flow statement

Question 8

The cash-based information provided by the cash flow statement contrasts with ___ from the income statement.

Answer 8

the accrual-based information

Question 9

The cash-based information provided by the cash flow statement contrasts with the accrual-based information from ___.

Answer 9

the income statement

Question 10

___ reflects cash receipts when collected as opposed to when the revenue was earned.

Answer 10

The cash flow statement

Question 11

The cash flow statement reflects ___ when collected as opposed to when the revenue was earned.

Answer 11

cash receipts

Question 12

The cash flow statement reflects cash receipts when ___.

Answer 12

collected as opposed to when the revenue was earned

Question 13

There are two acceptable formats for reporting ___ (also known as cash flow from operating activities or operating cash flow), defined as the net amount of cash provided from operating activities: the direct and the indirect methods

Answer 13

cash flow from operations

Question 14

There are two acceptable formats for reporting cash flow from operations (also known as ___ or operating cash flow), defined as the net amount of cash provided from operating activities: the direct and the indirect methods

Answer 14

cash flow from operating activities

Question 15

There are two acceptable formats for reporting cash flow from operations (also known as cash flow from operating activities or ___), defined as the net amount of cash provided from operating activities: the direct and the indirect methods

Answer 15

operating cash flow

Question 16

There are two acceptable formats for reporting cash flow from operations (also known as cash flow from operating activities or operating cash flow), defined as ___: the direct and the indirect methods

Answer 16

the net amount of cash provided from operating activities

Question 17

There are two acceptable formats for reporting cash flow from operations (also known as cash flow from operating activities or operating cash flow), defined as the net amount of cash provided from operating activities: ___

Answer 17

the direct and the indirect methods

Question 18

___ of presenting operating cash flows shows the specific cash inflows and outflows that result in reported cash flow from operating activities.

Answer 18

The direct method

Question 19

The direct method of presenting operating cash flows shows ___.

Answer 19

the specific cash inflows and outflows that result in reported cash flow from operating activities

Question 20

___ eliminates any impact of accruals and shows only cash receipts and cash payments.

Answer 20

The direct method

Question 21

The direct method eliminates ___ and shows only cash receipts and cash payments.

Answer 21

any impact of accruals

Question 22

The direct method eliminates any impact of accruals and shows ___.

Answer 22

only cash receipts and cash payments

Question 23

___ of presenting operating cash flows shows how cash flow from operations can be obtained from reported net income as the result of a series of adjustments.

Answer 23

The indirect method

Question 24

The indirect method of presenting operating cash flows shows how ___.

Answer 24

cash flow from operations can be obtained from reported net income as the result of a series of adjustments

Question 25

If revenue reported using accrual accounting is higher than the cash actually collected, the result will be ___.

Answer 25

an increase in accounts receivable

Question 26

If expenses reported using accrual accounting are lower than cash actually paid, the result will be ___.

Answer 26

a decrease in accounts payable

Question 27

___ typically relate to the long-term asset section of the balance sheet, and its financing activities typically relate to the equity and long-term debt sections of the balance sheet

Answer 27

A company’s investing activities

Question 28

A company’s investing activities typically relate to ___ of the balance sheet, and its financing activities typically relate to the equity and long-term debt sections of the balance sheet

Answer 28

the long-term asset section

Question 29

A company’s investing activities typically relate to the long-term asset section of ___, and its financing activities typically relate to the equity and long-term debt sections of the balance sheet

Answer 29

the balance sheet

Question 30

A company’s investing activities typically relate to the long-term asset section of the balance sheet, and its ___ typically relate to the equity and long-term debt sections of the balance sheet

Answer 30

financing activities

Question 31

A company’s investing activities typically relate to the long-term asset section of the balance sheet, and its financing activities typically relate to ___ of the balance sheet

Answer 31

the equity and long-term debt sections

Question 32

A company’s investing activities typically relate to the long-term asset section of the balance sheet, and its financing activities typically relate to the equity and long-term debt sections of ___

Answer 32

the balance sheet

Question 33

The preparation of ___ uses data from both the income statement and the comparative balance sheets

Answer 33

the cash flow statement

Question 34

The preparation of the cash flow statement uses data from both ___ and the comparative balance sheets

Answer 34

the income statement

Question 35

The preparation of the cash flow statement uses data from both the income statement and ___

Answer 35

the comparative balance sheets

Question 36

The first step in preparing ___ is to determine the total cash flows from operating activities.

Answer 36

the cash flow statement

Question 37

The first step in preparing the cash flow statement is to determine ___.

Answer 37

the total cash flows from operating activities

Question 38

Operating Activities: ___ We first determine how much cash was received from customers, followed by how much cash was paid to suppliers and to employees as well as how much cash was paid for other operating expenses, interest, and income taxes.

Answer 38

Direct Method

Question 39

Operating Activities: Direct Method We first determine how much ___, followed by how much cash was paid to suppliers and to employees as well as how much cash was paid for other operating expenses, interest, and income taxes.

Answer 39

cash was received from customers

Question 40

Operating Activities: Direct Method We first determine how much cash was received from customers, followed by how much ___ and to employees as well as how much cash was paid for other operating expenses, interest, and income taxes.

Answer 40

cash was paid to suppliers

Question 41

Operating Activities: Direct Method We first determine how much cash was received from customers, followed by how much cash was paid to suppliers and to ___ as well as how much cash was paid for other operating expenses, interest, and income taxes.

Answer 41

employees

Question 42

Operating Activities: Direct Method We first determine how much cash was received from customers, followed by how much cash was paid to suppliers and to employees as well as how much ___, interest, and income taxes.

Answer 42

cash was paid for other operating expenses

Question 43

Operating Activities: Direct Method We first determine how much cash was received from customers, followed by how much cash was paid to suppliers and to employees as well as how much cash was paid for other operating expenses, ___, and income taxes.

Answer 43

interest

Question 44

We first determine how much cash was received from customers, followed by how much cash was paid to suppliers and to employees as well as how much cash was paid for other operating expenses, interest, and ___.

Answer 44

income taxes

Question 45

Operating Activities: Direct Method - ___ To determine the cash receipts from customers, it is necessary to adjust the revenue amount by the net change in accounts receivable for the year. If accounts receivable increase during the year, revenue on an accrual basis is higher than cash receipts from customers, and vice versa.

Answer 45

Cash Received from Customers

Question 46

Operating Activities: Direct Method - Cash Received from Customers To determine ___, it is necessary to adjust the revenue amount by the net change in accounts receivable for the year. If accounts receivable increase during the year, revenue on an accrual basis is higher than cash receipts from customers, and vice versa.

Answer 46

the cash receipts from customers

Question 47

Operating Activities: Direct Method - Cash Received from Customers To determine the cash receipts from customers, it is necessary to adjust ___ amount by the net change in accounts receivable for the year. If accounts receivable increase during the year, revenue on an accrual basis is higher than cash receipts from customers, and vice versa.

Answer 47

the revenue

Question 48

Operating Activities: Direct Method - Cash Received from Customers To determine the cash receipts from customers, it is necessary to adjust the revenue amount by ___ in accounts receivable for the year. If accounts receivable increase during the year, revenue on an accrual basis is higher than cash receipts from customers, and vice versa.

Answer 48

the net change

Question 49

Operating Activities: Direct Method - Cash Received from Customers To determine the cash receipts from customers, it is necessary to adjust the revenue amount by the net change in ___ for the year. If accounts receivable increase during the year, revenue on an accrual basis is higher than cash receipts from customers, and vice versa.

Answer 49

accounts receivable

Question 50

Operating Activities: Direct Method - Cash Received from Customers To determine the cash receipts from customers, it is necessary to adjust the revenue amount by the net change in accounts receivable for the year. If ___ increase during the year, revenue on an accrual basis is higher than cash receipts from customers, and vice versa.

Answer 50

accounts receivable

Question 51

Operating Activities: Direct Method - Cash Received from Customers To determine the cash receipts from customers, it is necessary to adjust the revenue amount by the net change in accounts receivable for the year. If accounts receivable increase during the year, ___ is higher than cash receipts from customers, and vice versa.

Answer 51

revenue on an accrual basis

Question 52

Operating Activities: Direct Method - Cash Received from Customers To determine the cash receipts from customers, it is necessary to adjust the revenue amount by the net change in accounts receivable for the year. If accounts receivable increase during the year, revenue on an accrual basis is higher than ___, and vice versa.

Answer 52

cash receipts from customers

Question 53

Operating Activities: Direct Method - Cash Received from Customers ___ $23,598 Less: Increase in accounts receivable (55) Cash received from customers $23,543

Answer 53

Revenue

Question 54

Operating Activities: Direct Method - Cash Received from Customers Revenue ___ Less: Increase in accounts receivable (55) Cash received from customers $23,543

Answer 54

$23,598

Question 55

Operating Activities: Direct Method - Cash Received from Customers Revenue $23,598 ___ (55) Cash received from customers $23,543

Answer 55

Less: Increase in accounts receivable

Question 56

Operating Activities: Direct Method - Cash Received from Customers Revenue $23,598 Less: Increase in accounts receivable ___ Cash received from customers $23,543

Answer 56

(55)

Question 57

Operating Activities: Direct Method - Cash Received from Customers Revenue $23,598 Less: Increase in accounts receivable (55) ___ $23,543

Answer 57

Cash received from customers

Question 58

Operating Activities: Direct Method - Cash Received from Customers Revenue $23,598 Less: Increase in accounts receivable (55) Cash received from customers ___

Answer 58

$23,543

Question 59

Operating Activities: Direct Method - Cash Received from Customers Cash received from customers affects the accounts receivable account as follows: ___ $957 Plus revenue 23,598 Minus cash collected from customers (23,543) Ending accounts receivable $1,012

Answer 59

Beginning accounts receivable

Question 60

Operating Activities: Direct Method - Cash Received from Customers Cash received from customers affects the accounts receivable account as follows: Beginning accounts receivable ___ Plus revenue 23,598 Minus cash collected from customers (23,543) Ending accounts receivable $1,012

Answer 60

$957

Question 61

Operating Activities: Direct Method - Cash Received from Customers Cash received from customers affects the accounts receivable account as follows: Beginning accounts receivable $957 ___ 23,598 Minus cash collected from customers (23,543) Ending accounts receivable $1,012

Answer 61

Plus revenue

Question 62

Operating Activities: Direct Method - Cash Received from Customers Cash received from customers affects the accounts receivable account as follows: Beginning accounts receivable $957 Plus revenue ___ Minus cash collected from customers (23,543) Ending accounts receivable $1,012

Answer 62

23,598

Question 63

Operating Activities: Direct Method - Cash Received from Customers Cash received from customers affects the accounts receivable account as follows: Beginning accounts receivable $957 Plus revenue 23,598 ___ (23,543) Ending accounts receivable $1,012

Answer 63

Minus cash collected from customers

Question 64

Operating Activities: Direct Method - Cash Received from Customers Cash received from customers affects the accounts receivable account as follows: Beginning accounts receivable $957 Plus revenue 23,598 Minus cash collected from customers ___ Ending accounts receivable $1,012

Answer 64

(23,543)

Question 65

Operating Activities: Direct Method - Cash Received from Customers Cash received from customers affects the accounts receivable account as follows: Beginning accounts receivable $957 Plus revenue 23,598 Minus cash collected from customers (23,543) ___ $1,012

Answer 65

Ending accounts receivable

Question 66

Operating Activities: Direct Method - Cash Received from Customers Cash received from customers affects the accounts receivable account as follows: Beginning accounts receivable $957 Plus revenue 23,598 Minus cash collected from customers (23,543) Ending accounts receivable ___

Answer 66

$1,012

Question 67

Operating Activities: Direct Method - Cash Received from Customers The accounts receivable account information can also be presented as follows: ___ $957 Plus revenue 23,598 Minus ending accounts receivable (1,012) Cash collected from customers $23,543

Answer 67

Beginning accounts receivable

Question 68

Operating Activities: Direct Method - Cash Received from Customers The accounts receivable account information can also be presented as follows: Beginning accounts receivable ___ Plus revenue 23,598 Minus ending accounts receivable (1,012) Cash collected from customers $23,543

Answer 68

$957

Question 69

Operating Activities: Direct Method - Cash Received from Customers The accounts receivable account information can also be presented as follows: Beginning accounts receivable $957 ___ 23,598 Minus ending accounts receivable (1,012) Cash collected from customers $23,543

Answer 69

Plus revenue

Question 70

Operating Activities: Direct Method - Cash Received from Customers The accounts receivable account information can also be presented as follows: Beginning accounts receivable $957 Plus revenue ___ Minus ending accounts receivable (1,012) Cash collected from customers $23,543

Answer 70

23,598

Question 71

Operating Activities: Direct Method - Cash Received from Customers The accounts receivable account information can also be presented as follows: Beginning accounts receivable $957 Plus revenue 23,598 ___ (1,012) Cash collected from customers $23,543

Answer 71

Minus ending accounts receivable

Question 72

Operating Activities: Direct Method - Cash Received from Customers The accounts receivable account information can also be presented as follows: Beginning accounts receivable $957 Plus revenue 23,598 Minus ending accounts receivable ___ Cash collected from customers $23,543

Answer 72

(1,012)

Question 73

Operating Activities: Direct Method - Cash Received from Customers The accounts receivable account information can also be presented as follows: Beginning accounts receivable $957 Plus revenue 23,598 Minus ending accounts receivable (1,012) ___ $23,543

Answer 73

Cash collected from customers

Question 74

Operating Activities: Direct Method - Cash Received from Customers The accounts receivable account information can also be presented as follows: Beginning accounts receivable $957 Plus revenue 23,598 Minus ending accounts receivable (1,012) Cash collected from customers ___

Answer 74

$23,543

Question 75

Computing Cash Received from Customers Blue Bayou, an advertising company, reported revenues of $50 million, total expenses of $35 million, and net income of $15 million in the most recent year. If accounts receivable decreased by $12 million, how much cash did the company receive from customers? A. $62 million B. $50 million C. $38 million D. $15 million

Answer 75

A is correct. Revenues of $50 million plus the decrease in accounts receivable of $12 million equals $62 million cash received from customers. The decrease in accounts receivable means that the company received more in cash than the amount of revenue it reported.

Question 76

Operating Activities: Direct Method - ___ Cost of goods sold $11,456 Plus: Increase in inventory 707 Equals purchases from suppliers $12,163 Less: Increase in accounts payable (263) Cash paid to suppliers $11,900

Answer 76

Cash Paid to Suppliers

Question 77

Operating Activities: Direct Method - Cash Paid to Suppliers ___ $11,456 Plus: Increase in inventory 707 Equals purchases from suppliers $12,163 Less: Increase in accounts payable (263) Cash paid to suppliers $11,900

Answer 77

Cost of goods sold

Question 78

Operating Activities: Direct Method - Cash Paid to Suppliers Cost of goods sold ___ Plus: Increase in inventory 707 Equals purchases from suppliers $12,163 Less: Increase in accounts payable (263) Cash paid to suppliers $11,900

Answer 78

$11,456

Question 79

Operating Activities: Direct Method - Cash Paid to Suppliers Cost of goods sold $11,456 ___ 707 Equals purchases from suppliers $12,163 Less: Increase in accounts payable (263) Cash paid to suppliers $11,900

Answer 79

Plus: Increase in inventory

Question 80

Operating Activities: Direct Method - Cash Paid to Suppliers Cost of goods sold $11,456 Plus: Increase in inventory ___ Equals purchases from suppliers $12,163 Less: Increase in accounts payable (263) Cash paid to suppliers $11,900

Answer 80

707

Question 81

Operating Activities: Direct Method - Cash Paid to Suppliers Cost of goods sold $11,456 Plus: Increase in inventory 707 ___ $12,163 Less: Increase in accounts payable (263) Cash paid to suppliers $11,900

Answer 81

Equals purchases from suppliers

Question 82

Operating Activities: Direct Method - Cash Paid to Suppliers Cost of goods sold $11,456 Plus: Increase in inventory 707 Equals purchases from suppliers ___ Less: Increase in accounts payable (263) Cash paid to suppliers $11,900

Answer 82

$12,163

Question 83

Operating Activities: Direct Method - Cash Paid to Suppliers Cost of goods sold $11,456 Plus: Increase in inventory 707 Equals purchases from suppliers $12,163 ___ (263) Cash paid to suppliers $11,900

Answer 83

Less: Increase in accounts payable

Question 84

Operating Activities: Direct Method - Cash Paid to Suppliers Cost of goods sold $11,456 Plus: Increase in inventory 707 Equals purchases from suppliers $12,163 Less: Increase in accounts payable ___ Cash paid to suppliers $11,900

Answer 84

(263)

Question 85

Operating Activities: Direct Method - Cash Paid to Suppliers Cost of goods sold $11,456 Plus: Increase in inventory 707 Equals purchases from suppliers $12,163 Less: Increase in accounts payable (263) ___ $11,900

Answer 85

Cash paid to suppliers

Question 86

Operating Activities: Direct Method - Cash Paid to Suppliers Cost of goods sold $11,456 Plus: Increase in inventory 707 Equals purchases from suppliers $12,163 Less: Increase in accounts payable (263) Cash paid to suppliers ___

Answer 86

$11,900

Question 87

Operating Activities: Direct Method - ___ To determine purchases from suppliers, cost of goods sold is adjusted for the change in inventory. If inventory increased during the year, then purchases during the year exceeded cost of goods sold, and vice versa

Answer 87

Cash Paid to Suppliers

Question 88

Operating Activities: Direct Method - Cash Paid to Suppliers To determine ___, cost of goods sold is adjusted for the change in inventory. If inventory increased during the year, then purchases during the year exceeded cost of goods sold, and vice versa

Answer 88

purchases from suppliers

Question 89

Operating Activities: Direct Method - Cash Paid to Suppliers To determine purchases from suppliers, ___ is adjusted for the change in inventory. If inventory increased during the year, then purchases during the year exceeded cost of goods sold, and vice versa

Answer 89

cost of goods sold

Question 90

Operating Activities: Direct Method - Cash Paid to Suppliers To determine purchases from suppliers, cost of goods sold is adjusted for ___. If inventory increased during the year, then purchases during the year exceeded cost of goods sold, and vice versa

Answer 90

the change in inventory

Question 91

Operating Activities: Direct Method - Cash Paid to Suppliers To determine purchases from suppliers, cost of goods sold is adjusted for the change in inventory. If ___ increased during the year, then purchases during the year exceeded cost of goods sold, and vice versa

Answer 91

inventory

Question 92

Operating Activities: Direct Method - Cash Paid to Suppliers To determine purchases from suppliers, cost of goods sold is adjusted for the change in inventory. If inventory increased during the year, then ___ during the year exceeded cost of goods sold, and vice versa

Answer 92

purchases

Question 93

Operating Activities: Direct Method - Cash Paid to Suppliers To determine purchases from suppliers, cost of goods sold is adjusted for the change in inventory. If inventory increased during the year, then purchases during the year exceeded ___, and vice versa

Answer 93

cost of goods sold

Question 94

Operating Activities: Direct Method - Cash Paid to Suppliers ___ affects the inventory account, as shown below: Beginning inventory $3,277 Plus purchases 12,163 Minus cost of goods sold (11,456) Ending inventory $3,984

Answer 94

Purchases from suppliers

Question 95

Operating Activities: Direct Method - Cash Paid to Suppliers Purchases from suppliers affects the inventory account, as shown below: ___ $3,277 Plus purchases 12,163 Minus cost of goods sold (11,456) Ending inventory $3,984

Answer 95

Beginning inventory

Question 96

Operating Activities: Direct Method - Cash Paid to Suppliers Purchases from suppliers affects the inventory account, as shown below: Beginning inventory ___ Plus purchases 12,163 Minus cost of goods sold (11,456) Ending inventory $3,984

Answer 96

$3,277

Question 97

Operating Activities: Direct Method - Cash Paid to Suppliers Purchases from suppliers affects the inventory account, as shown below: Beginning inventory $3,277 ___ 12,163 Minus cost of goods sold (11,456) Ending inventory $3,984

Answer 97

Plus purchases

Question 98

Operating Activities: Direct Method - Cash Paid to Suppliers Purchases from suppliers affects the inventory account, as shown below: Beginning inventory $3,277 Plus purchases ___ Minus cost of goods sold (11,456) Ending inventory $3,984

Answer 98

12,163

Question 99

Operating Activities: Direct Method - Cash Paid to Suppliers Purchases from suppliers affects the inventory account, as shown below: Beginning inventory $3,277 Plus purchases 12,163 ___ (11,456) Ending inventory $3,984

Answer 99

Minus cost of goods sold

Question 100

Operating Activities: Direct Method - Cash Paid to Suppliers Purchases from suppliers affects the inventory account, as shown below: Beginning inventory $3,277 Plus purchases 12,163 Minus cost of goods sold ___ Ending inventory $3,984

Answer 100

(11,456)

Question 101

Operating Activities: Direct Method - Cash Paid to Suppliers Purchases from suppliers affects the inventory account, as shown below: Beginning inventory $3,277 Plus purchases 12,163 Minus cost of goods sold (11,456) ___ $3,984

Answer 101

Ending inventory

Question 102

Operating Activities: Direct Method - Cash Paid to Suppliers Purchases from suppliers affects the inventory account, as shown below: Beginning inventory $3,277 Plus purchases 12,163 Minus cost of goods sold (11,456) Ending inventory ___

Answer 102

$3,984

Question 103

Operating Activities: Direct Method - Cash Paid to Suppliers Once ___ have been determined, cash paid to suppliers can be calculated by adjusting purchases for the change in accounts payable. If the company made all purchases for cash, then accounts payable would not change and cash outflows would equal purchases. If accounts payable increased during the year, then purchases on an accrual basis are higher than they are on a cash basis, and vice versa.

Answer 103

purchases

Question 104

Operating Activities: Direct Method - Cash Paid to Suppliers Once purchases have been determined, ___ can be calculated by adjusting purchases for the change in accounts payable. If the company made all purchases for cash, then accounts payable would not change and cash outflows would equal purchases. If accounts payable increased during the year, then purchases on an accrual basis are higher than they are on a cash basis, and vice versa.

Answer 104

cash paid to suppliers

Question 105

Operating Activities: Direct Method - Cash Paid to Suppliers Once purchases have been determined, cash paid to suppliers can be calculated by adjusting ___ for the change in accounts payable. If the company made all purchases for cash, then accounts payable would not change and cash outflows would equal purchases. If accounts payable increased during the year, then purchases on an accrual basis are higher than they are on a cash basis, and vice versa.

Answer 105

purchases

Question 106

Operating Activities: Direct Method - Cash Paid to Suppliers Once purchases have been determined, cash paid to suppliers can be calculated by adjusting purchases for the change in ___. If the company made all purchases for cash, then accounts payable would not change and cash outflows would equal purchases. If accounts payable increased during the year, then purchases on an accrual basis are higher than they are on a cash basis, and vice versa.

Answer 106

accounts payable

Question 107

Operating Activities: Direct Method - Cash Paid to Suppliers Once purchases have been determined, cash paid to suppliers can be calculated by adjusting purchases for the change in accounts payable. If the company made all purchases for cash, then ___ would not change and cash outflows would equal purchases. If accounts payable increased during the year, then purchases on an accrual basis are higher than they are on a cash basis, and vice versa.

Answer 107

accounts payable

Question 108

Operating Activities: Direct Method - Cash Paid to Suppliers Once purchases have been determined, cash paid to suppliers can be calculated by adjusting purchases for the change in accounts payable. If the company made all purchases for cash, then accounts payable would not change and ___ would equal purchases. If accounts payable increased during the year, then purchases on an accrual basis are higher than they are on a cash basis, and vice versa.

Answer 108

cash outflows

Question 109

Operating Activities: Direct Method - Cash Paid to Suppliers Once purchases have been determined, cash paid to suppliers can be calculated by adjusting purchases for the change in accounts payable. If the company made all purchases for cash, then accounts payable would not change and cash outflows would equal ___. If accounts payable increased during the year, then purchases on an accrual basis are higher than they are on a cash basis, and vice versa.

Answer 109

purchases

Question 110

Operating Activities: Direct Method - Cash Paid to Suppliers Once purchases have been determined, cash paid to suppliers can be calculated by adjusting purchases for the change in accounts payable. If the company made all purchases for cash, then accounts payable would not change and cash outflows would equal purchases. If ___ increased during the year, then purchases on an accrual basis are higher than they are on a cash basis, and vice versa.

Answer 110

accounts payable

Question 111

Operating Activities: Direct Method - Cash Paid to Suppliers Once purchases have been determined, cash paid to suppliers can be calculated by adjusting purchases for the change in accounts payable. If the company made all purchases for cash, then accounts payable would not change and cash outflows would equal purchases. If accounts payable increased during the year, then ___ are higher than they are on a cash basis, and vice versa.

Answer 111

purchases on an accrual basis

Question 112

Operating Activities: Direct Method - Cash Paid to Suppliers Once purchases have been determined, cash paid to suppliers can be calculated by adjusting purchases for the change in accounts payable. If the company made all purchases for cash, then accounts payable would not change and cash outflows would equal purchases. If accounts payable increased during the year, then purchases on an accrual basis are higher than they are on ___, and vice versa.

Answer 112

a cash basis

Question 113

Operating Activities: Direct Method - Cash Paid to Suppliers ___ $12,163 Less: Increase in accounts payable (263) Cash paid to suppliers $11,900

Answer 113

Purchases from suppliers

Question 114

Operating Activities: Direct Method - Cash Paid to Suppliers Purchases from suppliers ___ Less: Increase in accounts payable (263) Cash paid to suppliers $11,900

Answer 114

$12,163

Question 115

Operating Activities: Direct Method - Cash Paid to Suppliers Purchases from suppliers $12,163 ___ (263) Cash paid to suppliers $11,900

Answer 115

Less: Increase in accounts payable

Question 116

Operating Activities: Direct Method - Cash Paid to Suppliers Purchases from suppliers $12,163 Less: Increase in accounts payable ___ Cash paid to suppliers $11,900

Answer 116

(263)

Question 117

Operating Activities: Direct Method - Cash Paid to Suppliers Purchases from suppliers $12,163 Less: Increase in accounts payable (263) ___ $11,900

Answer 117

Cash paid to suppliers

Question 118

Operating Activities: Direct Method - Cash Paid to Suppliers Purchases from suppliers $12,163 Less: Increase in accounts payable (263) Cash paid to suppliers ___

Answer 118

$11,900

Question 119

Operating Activities: Direct Method - Cash Paid to Suppliers The amount of cash paid to suppliers is reflected in the accounts payable account, as shown below: ___ $3,325 Plus purchases 12,163 Minus cash paid to suppliers (11,900) Ending accounts payable $3,588

Answer 119

Beginning accounts payable

Question 120

Operating Activities: Direct Method - Cash Paid to Suppliers The amount of cash paid to suppliers is reflected in the accounts payable account, as shown below: Beginning accounts payable ___ Plus purchases 12,163 Minus cash paid to suppliers (11,900) Ending accounts payable $3,588

Answer 120

$3,325

Question 121

Operating Activities: Direct Method - Cash Paid to Suppliers The amount of cash paid to suppliers is reflected in the accounts payable account, as shown below: Beginning accounts payable $3,325 ___ 12,163 Minus cash paid to suppliers (11,900) Ending accounts payable $3,588

Answer 121

Plus purchases

Question 122

Operating Activities: Direct Method - Cash Paid to Suppliers The amount of cash paid to suppliers is reflected in the accounts payable account, as shown below: Beginning accounts payable $3,325 Plus purchases ___ Minus cash paid to suppliers (11,900) Ending accounts payable $3,588

Answer 122

12,163

Question 123

Operating Activities: Direct Method - Cash Paid to Suppliers The amount of cash paid to suppliers is reflected in the accounts payable account, as shown below: Beginning accounts payable $3,325 Plus purchases 12,163 ___ (11,900) Ending accounts payable $3,588

Answer 123

Minus cash paid to suppliers

Question 124

Operating Activities: Direct Method - Cash Paid to Suppliers The amount of cash paid to suppliers is reflected in the accounts payable account, as shown below: Beginning accounts payable $3,325 Plus purchases 12,163 Minus cash paid to suppliers ___ Ending accounts payable $3,588

Answer 124

(11,900)

Question 125

Operating Activities: Direct Method - Cash Paid to Suppliers The amount of cash paid to suppliers is reflected in the accounts payable account, as shown below: Beginning accounts payable $3,325 Plus purchases 12,163 Minus cash paid to suppliers (11,900) ___ $3,588

Answer 125

Ending accounts payable

Question 126

Operating Activities: Direct Method - Cash Paid to Suppliers The amount of cash paid to suppliers is reflected in the accounts payable account, as shown below: Beginning accounts payable $3,325 Plus purchases 12,163 Minus cash paid to suppliers (11,900) Ending accounts payable ___

Answer 126

$3,588

Question 127

Orange Beverages Plc., a manufacturer of tropical drinks, reported cost of goods sold for the year of $100 million. Total assets increased by $55 million, but inventory declined by $6 million. Total liabilities increased by $45 million, but accounts payable decreased by $2 million. How much cash did the company pay to its suppliers during the year? A. $110 million B. $108 million C. $104 million D. $96 million

Answer 127

Solution. D is correct. Cost of goods sold of $100 million less the decrease in inventory of $6 million equals purchases from suppliers of $94 million. The decrease in accounts payable of $2 million means that the company paid $96 million in cash ($94 million plus $2 million).

Question 128

Operating Activities: Direct Method - Cash Paid to Employees To determine ___, it is necessary to adjust salary and wage expense by the net change in salary and wage payable for the year. If salary and wage payable increased during the year, then salary and wage expense on an accrual basis is higher than the amount of cash paid for this expense, and vice versa.

Answer 128

the cash paid to employees

Question 129

Operating Activities: Direct Method - Cash Paid to Employees To determine the cash paid to employees, it is necessary to adjust ___ by the net change in salary and wage payable for the year. If salary and wage payable increased during the year, then salary and wage expense on an accrual basis is higher than the amount of cash paid for this expense, and vice versa.

Answer 129

salary and wage expense

Question 130

Operating Activities: Direct Method - Cash Paid to Employees To determine the cash paid to employees, it is necessary to adjust salary and wage expense by ___ for the year. If salary and wage payable increased during the year, then salary and wage expense on an accrual basis is higher than the amount of cash paid for this expense, and vice versa.

Answer 130

the net change in salary and wage payable

Question 131

Operating Activities: Direct Method - Cash Paid to Employees To determine the cash paid to employees, it is necessary to adjust salary and wage expense by the net change in salary and wage payable for the year. If ___ increased during the year, then salary and wage expense on an accrual basis is higher than the amount of cash paid for this expense, and vice versa.

Answer 131

salary and wage payable

Question 132

Operating Activities: Direct Method - Cash Paid to Employees To determine the cash paid to employees, it is necessary to adjust salary and wage expense by the net change in salary and wage payable for the year. If salary and wage payable increased during the year, then ___ on an accrual basis is higher than the amount of cash paid for this expense, and vice versa.

Answer 132

salary and wage expense

Question 133

Operating Activities: Direct Method - Cash Paid to Employees To determine the cash paid to employees, it is necessary to adjust salary and wage expense by the net change in salary and wage payable for the year. If salary and wage payable increased during the year, then salary and wage expense on ___ is higher than the amount of cash paid for this expense, and vice versa.

Answer 133

an accrual basis

Question 134

Operating Activities: Direct Method - Cash Paid to Employees To determine the cash paid to employees, it is necessary to adjust salary and wage expense by the net change in salary and wage payable for the year. If salary and wage payable increased during the year, then salary and wage expense on an accrual basis is higher than the amount of ___ paid for this expense, and vice versa.

Answer 134

cash

Question 135

Operating Activities: Direct Method - Cash Paid to Employees ___ $4,123 Less: Increase in salary and wage payable (10) Cash paid to employees $4,113

Answer 135

Salary and wage expense

Question 136

Operating Activities: Direct Method - Cash Paid to Employees Salary and wage expense ___ Less: Increase in salary and wage payable (10) Cash paid to employees $4,113

Answer 136

$4,123

Question 137

Operating Activities: Direct Method - Cash Paid to Employees Salary and wage expense $4,123 ___ (10) Cash paid to employees $4,113

Answer 137

Less: Increase in salary and wage payable

Question 138

Operating Activities: Direct Method - Cash Paid to Employees Salary and wage expense $4,123 Less: Increase in salary and wage payable ___ Cash paid to employees $4,113

Answer 138

(10)

Question 139

Operating Activities: Direct Method - Cash Paid to Employees Salary and wage expense $4,123 Less: Increase in salary and wage payable (10) ___ $4,113

Answer 139

Cash paid to employees

Question 140

Operating Activities: Direct Method - Cash Paid to Employees Salary and wage expense $4,123 Less: Increase in salary and wage payable (10) Cash paid to employees ___

Answer 140

$4,113

Question 141

Operating Activities: Direct Method - Cash Paid to Employees The amount of cash paid to employees is reflected in the salary and wage payable account, as shown below: ___ $75 Plus salary and wage expense 4,123 Minus cash paid to employees (4,113) Ending salary and wages payable $85

Answer 141

Beginning salary and wages payable

Question 142

Operating Activities: Direct Method - Cash Paid to Employees The amount of cash paid to employees is reflected in the salary and wage payable account, as shown below: Beginning salary and wages payable ___ Plus salary and wage expense 4,123 Minus cash paid to employees (4,113) Ending salary and wages payable $85

Answer 142

$75

Question 143

Operating Activities: Direct Method - Cash Paid to Employees The amount of cash paid to employees is reflected in the salary and wage payable account, as shown below: Beginning salary and wages payable $75 ___ 4,123 Minus cash paid to employees (4,113) Ending salary and wages payable $85

Answer 143

Plus salary and wage expense

Question 144

Operating Activities: Direct Method - Cash Paid to Employees The amount of cash paid to employees is reflected in the salary and wage payable account, as shown below: Beginning salary and wages payable $75 Plus salary and wage expense ___ Minus cash paid to employees (4,113) Ending salary and wages payable $85

Answer 144

4,123

Question 145

Operating Activities: Direct Method - Cash Paid to Employees The amount of cash paid to employees is reflected in the salary and wage payable account, as shown below: Beginning salary and wages payable $75 Plus salary and wage expense 4,123 ___ (4,113) Ending salary and wages payable $85

Answer 145

Minus cash paid to employees

Question 146

Operating Activities: Direct Method - Cash Paid to Employees The amount of cash paid to employees is reflected in the salary and wage payable account, as shown below: Beginning salary and wages payable $75 Plus salary and wage expense 4,123 Minus cash paid to employees ___ Ending salary and wages payable $85

Answer 146

(4,113)

Question 147

Operating Activities: Direct Method - Cash Paid to Employees The amount of cash paid to employees is reflected in the salary and wage payable account, as shown below: Beginning salary and wages payable $75 Plus salary and wage expense 4,123 Minus cash paid to employees (4,113) ___ $85

Answer 147

Ending salary and wages payable

Question 148

Operating Activities: Direct Method - Cash Paid to Employees The amount of cash paid to employees is reflected in the salary and wage payable account, as shown below: Beginning salary and wages payable $75 Plus salary and wage expense 4,123 Minus cash paid to employees (4,113) Ending salary and wages payable ___

Answer 148

$85

Question 149

Operating Activities: Direct Method - Cash Paid for Other Operating Expenses To determine the cash paid for other operating expenses, it is necessary to adjust ___ on the income statement by the net changes in prepaid expenses and accrued expense liabilities for the year. If prepaid expenses increased during the year, other operating expenses on a cash basis were higher than on an accrual basis, and vice versa.

Answer 149

the other operating expenses amount

Question 150

Operating Activities: Direct Method - Cash Paid for Other Operating Expenses To determine the cash paid for other operating expenses, it is necessary to adjust the other operating expenses amount on the income statement by ___ in prepaid expenses and accrued expense liabilities for the year. If prepaid expenses increased during the year, other operating expenses on a cash basis were higher than on an accrual basis, and vice versa.

Answer 150

the net changes

Question 151

Operating Activities: Direct Method - Cash Paid for Other Operating Expenses To determine the cash paid for other operating expenses, it is necessary to adjust the other operating expenses amount on the income statement by the net changes in ___ and accrued expense liabilities for the year. If prepaid expenses increased during the year, other operating expenses on a cash basis were higher than on an accrual basis, and vice versa.

Answer 151

prepaid expenses

Question 152

Operating Activities: Direct Method - Cash Paid for Other Operating Expenses To determine the cash paid for other operating expenses, it is necessary to adjust the other operating expenses amount on the income statement by the net changes in prepaid expenses and ___ for the year. If prepaid expenses increased during the year, other operating expenses on a cash basis were higher than on an accrual basis, and vice versa.

Answer 152

accrued expense liabilities

Question 153

Operating Activities: Direct Method - Cash Paid for Other Operating Expenses To determine the cash paid for other operating expenses, it is necessary to adjust the other operating expenses amount on the income statement by the net changes in prepaid expenses and accrued expense liabilities for the year. If ___ increased during the year, other operating expenses on a cash basis were higher than on an accrual basis, and vice versa.

Answer 153

prepaid expenses

Question 154

Operating Activities: Direct Method - Cash Paid for Other Operating Expenses To determine the cash paid for other operating expenses, it is necessary to adjust the other operating expenses amount on the income statement by the net changes in prepaid expenses and accrued expense liabilities for the year. If prepaid expenses increased during the year, ___ on a cash basis were higher than on an accrual basis, and vice versa.

Answer 154

other operating expenses

Question 155

Operating Activities: Direct Method - Cash Paid for Other Operating Expenses To determine the cash paid for other operating expenses, it is necessary to adjust the other operating expenses amount on the income statement by the net changes in prepaid expenses and accrued expense liabilities for the year. If prepaid expenses increased during the year, other operating expenses on a ___ basis were higher than on an accrual basis, and vice versa.

Answer 155

cash

Question 156

Operating Activities: Direct Method - Cash Paid for Other Operating Expenses To determine the cash paid for other operating expenses, it is necessary to adjust the other operating expenses amount on the income statement by the net changes in prepaid expenses and accrued expense liabilities for the year. If prepaid expenses increased during the year, other operating expenses on a cash basis were higher than on an ___ basis, and vice versa.

Answer 156

accrual

Question 157

Operating Activities: Direct Method - Cash Paid for Other Operating Expenses ___ $3,577 Less: Decrease in prepaid expenses (23) Less: Increase in other accrued liabilities (22) Cash paid for other operating expenses $3,532

Answer 157

Other operating expenses

Question 158

Operating Activities: Direct Method - Cash Paid for Other Operating Expenses Other operating expenses ___ Less: Decrease in prepaid expenses (23) Less: Increase in other accrued liabilities (22) Cash paid for other operating expenses $3,532

Answer 158

$3,577

Question 159

Operating Activities: Direct Method - Cash Paid for Other Operating Expenses Other operating expenses $3,577 ___ (23) Less: Increase in other accrued liabilities (22) Cash paid for other operating expenses $3,532

Answer 159

Less: Decrease in prepaid expenses

Question 160

Operating Activities: Direct Method - Cash Paid for Other Operating Expenses Other operating expenses $3,577 Less: Decrease in prepaid expenses ___ Less: Increase in other accrued liabilities (22) Cash paid for other operating expenses $3,532

Answer 160

(23)

Question 161

Operating Activities: Direct Method - Cash Paid for Other Operating Expenses Other operating expenses $3,577 Less: Decrease in prepaid expenses (23) ___ (22) Cash paid for other operating expenses $3,532

Answer 161

Less: Increase in other accrued liabilities

Question 162

Operating Activities: Direct Method - Cash Paid for Other Operating Expenses Other operating expenses $3,577 Less: Decrease in prepaid expenses (23) Less: Increase in other accrued liabilities ___ Cash paid for other operating expenses $3,532

Answer 162

(22)

Question 163

Operating Activities: Direct Method - Cash Paid for Other Operating Expenses Other operating expenses $3,577 Less: Decrease in prepaid expenses (23) Less: Increase in other accrued liabilities (22) ___ $3,532

Answer 163

Cash paid for other operating expenses

Question 164

Operating Activities: Direct Method - Cash Paid for Other Operating Expenses Other operating expenses $3,577 Less: Decrease in prepaid expenses (23) Less: Increase in other accrued liabilities (22) Cash paid for other operating expenses ___

Answer 164

$3,532

Question 165

Black Ice, a sportswear manufacturer, reported other operating expenses of $30 million. Prepaid insurance expense increased by $4 million, and accrued utilities payable decreased by $7 million. Insurance and utilities are the only two components of other operating expenses. How much cash did the company pay in other operating expenses? A. $41 million B. $33 million C. $27 million D. $19 million

Answer 165

Solution. A is correct. Other operating expenses of $30 million plus the increase in prepaid insurance expense of $4 million plus the decrease in accrued utilities payable of $7 million equals $41 million.

Question 166

Operating Activities: Direct Method - Cash Paid for Interest The company is either subject to ___, which requires that interest expense be included in operating cash flows, or it is subject to IFRS, which gives companies the option to treat interest expense in this manner.

Answer 166

U.S. GAAP

Question 167

Operating Activities: Direct Method - Cash Paid for Interest The company is either subject to U.S. GAAP, which requires that ___, or it is subject to IFRS, which gives companies the option to treat interest expense in this manner.

Answer 167

interest expense be included in operating cash flows

Question 168

Operating Activities: Direct Method - Cash Paid for Interest The company is either subject to U.S. GAAP, which requires that interest expense be included in operating cash flows, or it is subject to ___, which gives companies the option to treat interest expense in this manner.

Answer 168

IFRS

Question 169

Operating Activities: Direct Method - Cash Paid for Interest The company is either subject to U.S. GAAP, which requires that interest expense be included in operating cash flows, or it is subject to IFRS, which gives companies ___.

Answer 169

the option to treat interest expense in this manner

Question 170

Operating Activities: Direct Method - Cash Paid for Interest To determine ___, it is necessary to adjust interest expense by the net change in interest payable for the year. If interest payable increases during the year, then interest expense on an accrual basis is higher than the amount of cash paid for interest, and vice versa.

Answer 170

the cash paid for interest

Question 171

Operating Activities: Direct Method - Cash Paid for Interest To determine the cash paid for interest, it is necessary to adjust ___ by the net change in interest payable for the year. If interest payable increases during the year, then interest expense on an accrual basis is higher than the amount of cash paid for interest, and vice versa.

Answer 171

interest expense

Question 172

Operating Activities: Direct Method - Cash Paid for Interest To determine the cash paid for interest, it is necessary to adjust interest expense by the ___ in interest payable for the year. If interest payable increases during the year, then interest expense on an accrual basis is higher than the amount of cash paid for interest, and vice versa.

Answer 172

net change

Question 173

Operating Activities: Direct Method - Cash Paid for Interest To determine the cash paid for interest, it is necessary to adjust interest expense by the net change in ___ for the year. If interest payable increases during the year, then interest expense on an accrual basis is higher than the amount of cash paid for interest, and vice versa.

Answer 173

interest payable

Question 174

Operating Activities: Direct Method - Cash Paid for Interest To determine the cash paid for interest, it is necessary to adjust interest expense by the net change in interest payable for the year. If ___ increases during the year, then interest expense on an accrual basis is higher than the amount of cash paid for interest, and vice versa.

Answer 174

interest payable

Question 175

Operating Activities: Direct Method - Cash Paid for Interest To determine the cash paid for interest, it is necessary to adjust interest expense by the net change in interest payable for the year. If interest payable increases during the year, then ___ on an accrual basis is higher than the amount of cash paid for interest, and vice versa.

Answer 175

interest expense

Question 176

To determine the cash paid for interest, it is necessary to adjust interest expense by the net change in interest payable for the year. If interest payable increases during the year, then interest expense on an ___ basis is higher than the amount of cash paid for interest, and vice versa.

Answer 176

accrual

Question 177

To determine the cash paid for interest, it is necessary to adjust interest expense by the net change in interest payable for the year. If interest payable increases during the year, then interest expense on an accrual basis is higher than the amount of ___ paid for interest, and vice versa.

Answer 177

cash

Question 178

Operating Activities: Direct Method - Cash Paid for Interest ___ $246 Plus: Decrease in interest payable 12 Cash paid for interest $258

Answer 178

Interest expense

Question 179

Operating Activities: Direct Method - Cash Paid for Interest Interest expense ___ Plus: Decrease in interest payable 12 Cash paid for interest $258

Answer 179

$246

Question 180

Operating Activities: Direct Method - Cash Paid for Interest Interest expense $246 ___ 12 Cash paid for interest $258

Answer 180

Plus: Decrease in interest payable

Question 181

Operating Activities: Direct Method - Cash Paid for Interest Interest expense $246 Plus: Decrease in interest payable ___ Cash paid for interest $258

Answer 181

12

Question 182

Operating Activities: Direct Method - Cash Paid for Interest Interest expense $246 Plus: Decrease in interest payable 12 ___ $258

Answer 182

Cash paid for interest

Question 183

Operating Activities: Direct Method - Cash Paid for Interest Interest expense $246 Plus: Decrease in interest payable 12 Cash paid for interest ___

Answer 183

$258

Question 184

Operating Activities: Direct Method - Cash Paid for Interest Cash paid for interest may also be determined by an analysis of the interest payable account, as shown below: ___ $74 Plus interest expense 246 Minus cash paid for interest (258) Ending interest payable $62

Answer 184

Beginning interest payable

Question 185

Operating Activities: Direct Method - Cash Paid for Interest Cash paid for interest may also be determined by an analysis of the interest payable account, as shown below: Beginning interest payable ___ Plus interest expense 246 Minus cash paid for interest (258) Ending interest payable $62

Answer 185

$74

Question 186

Operating Activities: Direct Method - Cash Paid for Interest Cash paid for interest may also be determined by an analysis of the interest payable account, as shown below: Beginning interest payable $74 ___ 246 Minus cash paid for interest (258) Ending interest payable $62

Answer 186

Plus interest expense

Question 187

Operating Activities: Direct Method - Cash Paid for Interest Cash paid for interest may also be determined by an analysis of the interest payable account, as shown below: Beginning interest payable $74 Plus interest expense ___ Minus cash paid for interest (258) Ending interest payable $62

Answer 187

246

Question 188

Operating Activities: Direct Method - Cash Paid for Interest Cash paid for interest may also be determined by an analysis of the interest payable account, as shown below: Beginning interest payable $74 Plus interest expense 246 ___ (258) Ending interest payable $62

Answer 188

Minus cash paid for interest

Question 189

Operating Activities: Direct Method - Cash Paid for Interest Cash paid for interest may also be determined by an analysis of the interest payable account, as shown below: Beginning interest payable $74 Plus interest expense 246 Minus cash paid for interest ___ Ending interest payable $62

Answer 189

(258)

Question 190

Operating Activities: Direct Method - Cash Paid for Interest Cash paid for interest may also be determined by an analysis of the interest payable account, as shown below: Beginning interest payable $74 Plus interest expense 246 Minus cash paid for interest (258) ___ $62

Answer 190

Ending interest payable

Question 191

Operating Activities: Direct Method - Cash Paid for Interest Cash paid for interest may also be determined by an analysis of the interest payable account, as shown below: Beginning interest payable $74 Plus interest expense 246 Minus cash paid for interest (258) Ending interest payable ___

Answer 191

$62

Question 192

Operating Activities: Direct Method - Cash Paid for Income Taxes To determine ___, it is necessary to adjust the income tax expense amount on the income statement by the net changes in taxes receivable, taxes payable, and deferred income taxes for the year. If taxes receivable or deferred tax assets increase during the year, income taxes on a cash basis will be higher than on an accrual basis, and vice versa.

Answer 192

the cash paid for income taxes

Question 193

Operating Activities: Direct Method - Cash Paid for Income Taxes To determine the cash paid for income taxes, it is necessary to adjust ___ on the income statement by the net changes in taxes receivable, taxes payable, and deferred income taxes for the year. If taxes receivable or deferred tax assets increase during the year, income taxes on a cash basis will be higher than on an accrual basis, and vice versa.

Answer 193

the income tax expense amount

Question 194

Operating Activities: Direct Method - Cash Paid for Income Taxes To determine the cash paid for income taxes, it is necessary to adjust the income tax expense amount on the income statement by ___ in taxes receivable, taxes payable, and deferred income taxes for the year. If taxes receivable or deferred tax assets increase during the year, income taxes on a cash basis will be higher than on an accrual basis, and vice versa.

Answer 194

the net changes

Question 195

Operating Activities: Direct Method - Cash Paid for Income Taxes To determine the cash paid for income taxes, it is necessary to adjust the income tax expense amount on the income statement by the net changes in ___, taxes payable, and deferred income taxes for the year. If taxes receivable or deferred tax assets increase during the year, income taxes on a cash basis will be higher than on an accrual basis, and vice versa.

Answer 195

taxes receivable

Question 196

Operating Activities: Direct Method - Cash Paid for Income Taxes To determine the cash paid for income taxes, it is necessary to adjust the income tax expense amount on the income statement by the net changes in taxes receivable, ___, and deferred income taxes for the year. If taxes receivable or deferred tax assets increase during the year, income taxes on a cash basis will be higher than on an accrual basis, and vice versa.

Answer 196

taxes payable

Question 197

Operating Activities: Direct Method - Cash Paid for Income Taxes To determine the cash paid for income taxes, it is necessary to adjust the income tax expense amount on the income statement by the net changes in taxes receivable, taxes payable, and ___ for the year. If taxes receivable or deferred tax assets increase during the year, income taxes on a cash basis will be higher than on an accrual basis, and vice versa.

Answer 197

deferred income taxes

Question 198

Operating Activities: Direct Method - Cash Paid for Income Taxes To determine the cash paid for income taxes, it is necessary to adjust the income tax expense amount on the income statement by the net changes in taxes receivable, taxes payable, and deferred income taxes for the year. If ___ or deferred tax assets increase during the year, income taxes on a cash basis will be higher than on an accrual basis, and vice versa.

Answer 198

taxes receivable

Question 199

Operating Activities: Direct Method - Cash Paid for Income Taxes To determine the cash paid for income taxes, it is necessary to adjust the income tax expense amount on the income statement by the net changes in taxes receivable, taxes payable, and deferred income taxes for the year. If taxes receivable or ___ increase during the year, income taxes on a cash basis will be higher than on an accrual basis, and vice versa.

Answer 199

deferred tax assets

Question 200

Operating Activities: Direct Method - Cash Paid for Income Taxes ___ $1,139 Less: Increase in income tax payable (5) Cash paid for income taxes $1,134

Answer 200

Income tax expense

Question 201

Operating Activities: Direct Method - Cash Paid for Income Taxes Income tax expense ___ Less: Increase in income tax payable (5) Cash paid for income taxes $1,134

Answer 201

$1,139

Question 202

Operating Activities: Direct Method - Cash Paid for Income Taxes Income tax expense $1,139 ___ (5) Cash paid for income taxes $1,134

Answer 202

Less: Increase in income tax payable

Question 203

Operating Activities: Direct Method - Cash Paid for Income Taxes Income tax expense $1,139 Less: Increase in income tax payable ___ Cash paid for income taxes $1,134

Answer 203

(5)

Question 204

Operating Activities: Direct Method - Cash Paid for Income Taxes Income tax expense $1,139 Less: Increase in income tax payable (5) ___ $1,134

Answer 204

Cash paid for income taxes

Question 205

Operating Activities: Direct Method - Cash Paid for Income Taxes Income tax expense $1,139 Less: Increase in income tax payable (5) Cash paid for income taxes ___

Answer 205

$1,134

Question 206

The second and third steps in preparing the cash flow statement are to determine ___ from investing activities and from financing activities.

Answer 206

the total cash flows

Question 207

The second and third steps in preparing the cash flow statement are to determine the total cash flows from ___ and from financing activities.

Answer 207

investing activities

Question 208

The second and third steps in preparing the cash flow statement are to determine the total cash flows from investing activities and from ___.

Answer 208

financing activities

Question 209

Investing Activities: Direct Method To determine the cash inflow from ___, we analyze the equipment and accumulated depreciation accounts as well as the gain on the sale of equipment.

Answer 209

the sale of equipment

Question 210

Investing Activities: Direct Method To determine the cash inflow from the sale of equipment, we analyze ___ and accumulated depreciation accounts as well as the gain on the sale of equipment.

Answer 210

the equipment

Question 211

Investing Activities: Direct Method To determine the cash inflow from the sale of equipment, we analyze the equipment and ___ accounts as well as the gain on the sale of equipment.

Answer 211

accumulated depreciation

Question 212

Investing Activities: Direct Method To determine the cash inflow from the sale of equipment, we analyze the equipment and accumulated depreciation accounts as well as ___.

Answer 212

the gain on the sale of equipment

Question 213

Investing Activities: Direct Method - ___ $8,555 - Plus equipment purchased (from informational note) 1,300 - Minus ending balance equipment (from balance sheet) (8,798) - Equals historical cost of equipment sold $1,057

Answer 213

Beginning balance equipment (from balance sheet)

Question 214

Investing Activities: Direct Method - Beginning balance equipment (from balance sheet) ___ - Plus equipment purchased (from informational note) 1,300 - Minus ending balance equipment (from balance sheet) (8,798) - Equals historical cost of equipment sold $1,057

Answer 214

$8,555

Question 215

Investing Activities: Direct Method - Beginning balance equipment (from balance sheet) $8,555 - ___ 1,300 - Minus ending balance equipment (from balance sheet) (8,798) - Equals historical cost of equipment sold $1,057

Answer 215

Plus equipment purchased (from informational note)

Question 216

Investing Activities: Direct Method - Beginning balance equipment (from balance sheet) $8,555 - Plus equipment purchased (from informational note) ___ - Minus ending balance equipment (from balance sheet) (8,798) - Equals historical cost of equipment sold $1,057

Answer 216

1,300

Question 217

Investing Activities: Direct Method - Beginning balance equipment (from balance sheet) $8,555 - Plus equipment purchased (from informational note) 1,300 - ___ (8,798) - Equals historical cost of equipment sold $1,057

Answer 217

Minus ending balance equipment (from balance sheet)

Question 218

Investing Activities: Direct Method - Beginning balance equipment (from balance sheet) $8,555 - Plus equipment purchased (from informational note) 1,300 - Minus ending balance equipment (from balance sheet) ___ - Equals historical cost of equipment sold $1,057

Answer 218

(8,798)

Question 219

Investing Activities: Direct Method - Beginning balance equipment (from balance sheet) $8,555 - Plus equipment purchased (from informational note) 1,300 - Minus ending balance equipment (from balance sheet) (8,798) - ___ $1,057

Answer 219

Equals historical cost of equipment sold

Question 220

Investing Activities: Direct Method - Beginning balance equipment (from balance sheet) $8,555 - Plus equipment purchased (from informational note) 1,300 - Minus ending balance equipment (from balance sheet) (8,798) - Equals historical cost of equipment sold ___

Answer 220

$1,057

Question 221

Investing Activities: Direct Method - ___ $2,891 - Plus depreciation expense (from income statement) 1,052 - Minus ending balance accumulated depreciation (from balance sheet) (3,443) - Equals accumulated depreciation on equipment sold $500

Answer 221

Beginning balance accumulated depreciation (from balance sheet)

Question 222

Investing Activities: Direct Method - Beginning balance accumulated depreciation (from balance sheet) ___ - Plus depreciation expense (from income statement) 1,052 - Minus ending balance accumulated depreciation (from balance sheet) (3,443) - Equals accumulated depreciation on equipment sold $500

Answer 222

$2,891

Question 223

Investing Activities: Direct Method - Beginning balance accumulated depreciation (from balance sheet) $2,891 - ___ 1,052 - Minus ending balance accumulated depreciation (from balance sheet) (3,443) - Equals accumulated depreciation on equipment sold $500

Answer 223

Plus depreciation expense (from income statement)

Question 223

Investing Activities: Direct Method - Beginning balance accumulated depreciation (from balance sheet) $2,891 - Plus depreciation expense (from income statement) ___ - Minus ending balance accumulated depreciation (from balance sheet) (3,443) - Equals accumulated depreciation on equipment sold $500

Answer 223

1,052

Question 224

Investing Activities: Direct Method - Beginning balance accumulated depreciation (from balance sheet) $2,891 - Plus depreciation expense (from income statement) 1,052 - ___ (3,443) - Equals accumulated depreciation on equipment sold $500

Answer 224

Minus ending balance accumulated depreciation (from balance sheet)

Question 225

Investing Activities: Direct Method - Beginning balance accumulated depreciation (from balance sheet) $2,891 - Plus depreciation expense (from income statement) 1,052 - Minus ending balance accumulated depreciation (from balance sheet) ___ - Equals accumulated depreciation on equipment sold $500

Answer 225

(3,443)

Question 226

Investing Activities: Direct Method - Beginning balance accumulated depreciation (from balance sheet) $2,891 - Plus depreciation expense (from income statement) 1,052 - Minus ending balance accumulated depreciation (from balance sheet) (3,443) - ___ $500

Answer 226

Equals accumulated depreciation on equipment sold

Question 227

Investing Activities: Direct Method - Beginning balance accumulated depreciation (from balance sheet) $2,891 - Plus depreciation expense (from income statement) 1,052 - Minus ending balance accumulated depreciation (from balance sheet) (3,443) - Equals accumulated depreciation on equipment sold ___

Answer 227

$500

Question 228

Investing Activities: Direct Method - ___ $1,057 - Less accumulated depreciation on equipment sold (calculated above) (500) - Equals: Book value of equipment sold 557 - Plus: Gain on sale of equipment (from the income statement) 205 - Equals: Cash received from sale of equipment $762

Answer 228

Historical cost of equipment sold (calculated above)

Question 229

Investing Activities: Direct Method - Historical cost of equipment sold (calculated above) ___ - Less accumulated depreciation on equipment sold (calculated above) (500) - Equals: Book value of equipment sold 557 - Plus: Gain on sale of equipment (from the income statement) 205 - Equals: Cash received from sale of equipment $762

Answer 229

$1,057

Question 230

Investing Activities: Direct Method - Historical cost of equipment sold (calculated above) $1,057 - ___ (500) - Equals: Book value of equipment sold 557 - Plus: Gain on sale of equipment (from the income statement) 205 - Equals: Cash received from sale of equipment $762

Answer 230

Less accumulated depreciation on equipment sold (calculated above)

Question 231

Investing Activities: Direct Method - Historical cost of equipment sold (calculated above) $1,057 - Less accumulated depreciation on equipment sold (calculated above) ___ - Equals: Book value of equipment sold 557 - Plus: Gain on sale of equipment (from the income statement) 205 - Equals: Cash received from sale of equipment $762

Answer 231

(500)

Question 232

Investing Activities: Direct Method - Historical cost of equipment sold (calculated above) $1,057 - Less accumulated depreciation on equipment sold (calculated above) (500) - ___ 557 - Plus: Gain on sale of equipment (from the income statement) 205 - Equals: Cash received from sale of equipment $762

Answer 232

Equals: Book value of equipment sold

Question 233

Investing Activities: Direct Method - Historical cost of equipment sold (calculated above) $1,057 - Less accumulated depreciation on equipment sold (calculated above) (500) - Equals: Book value of equipment sold ___ - Plus: Gain on sale of equipment (from the income statement) 205 - Equals: Cash received from sale of equipment $762

Answer 233

557

Question 234

Investing Activities: Direct Method - Historical cost of equipment sold (calculated above) $1,057 - Less accumulated depreciation on equipment sold (calculated above) (500) - Equals: Book value of equipment sold 557 - ___ 205 - Equals: Cash received from sale of equipment $762

Answer 234

Plus: Gain on sale of equipment (from the income statement)

Question 235

Investing Activities: Direct Method - Historical cost of equipment sold (calculated above) $1,057 - Less accumulated depreciation on equipment sold (calculated above) (500) - Equals: Book value of equipment sold 557 - Plus: Gain on sale of equipment (from the income statement) ___ - Equals: Cash received from sale of equipment $762

Answer 235

205

Question 236

Investing Activities: Direct Method - Historical cost of equipment sold (calculated above) $1,057 - Less accumulated depreciation on equipment sold (calculated above) (500) - Equals: Book value of equipment sold 557 - Plus: Gain on sale of equipment (from the income statement) 205 - ___ $762

Answer 236

Equals: Cash received from sale of equipment

Question 237

Investing Activities: Direct Method - Historical cost of equipment sold (calculated above) $1,057 - Less accumulated depreciation on equipment sold (calculated above) (500) - Equals: Book value of equipment sold 557 - Plus: Gain on sale of equipment (from the income statement) 205 - Equals: Cash received from sale of equipment ___

Answer 237

$762

Question 238

Investing Activities: Direct Method - Dividends - ___ $2,876 - Plus net income (from the income statement) 2,210 - Minus ending balance of retained earnings (from the balance sheet) (3,966) - Equals dividends paid $1,120

Answer 238

Beginning balance of retained earnings (from the balance sheet)

Question 239

Investing Activities: Direct Method - Dividends - Beginning balance of retained earnings (from the balance sheet) ___ - Plus net income (from the income statement) 2,210 - Minus ending balance of retained earnings (from the balance sheet) (3,966) - Equals dividends paid $1,120

Answer 239

$2,876

Question 240

Investing Activities: Direct Method - Dividends - Beginning balance of retained earnings (from the balance sheet) $2,876 - ___ 2,210 - Minus ending balance of retained earnings (from the balance sheet) (3,966) - Equals dividends paid $1,120

Answer 240

Plus net income (from the income statement)

Question 241

Investing Activities: Direct Method - Dividends - Beginning balance of retained earnings (from the balance sheet) $2,876 - Plus net income (from the income statement) ___ - Minus ending balance of retained earnings (from the balance sheet) (3,966) - Equals dividends paid $1,120

Answer 241

2,210

Question 242

Investing Activities: Direct Method - Dividends - Beginning balance of retained earnings (from the balance sheet) $2,876 - Plus net income (from the income statement) 2,210 - ___ (3,966) - Equals dividends paid $1,120

Answer 242

Minus ending balance of retained earnings (from the balance sheet)

Question 242

Investing Activities: Direct Method - Dividends - Beginning balance of retained earnings (from the balance sheet) $2,876 - Plus net income (from the income statement) 2,210 - Minus ending balance of retained earnings (from the balance sheet) ___ - Equals dividends paid $1,120

Answer 242

(3,966)

Question 243

Investing Activities: Direct Method - Dividends - Beginning balance of retained earnings (from the balance sheet) $2,876 - Plus net income (from the income statement) 2,210 - Minus ending balance of retained earnings (from the balance sheet) (3,966) - ___ $1,120

Answer 243

Equals dividends paid

Question 243

Investing Activities: Direct Method - Dividends - Beginning balance of retained earnings (from the balance sheet) $2,876 - Plus net income (from the income statement) 2,210 - Minus ending balance of retained earnings (from the balance sheet) (3,966) - Equals dividends paid ___

Answer 243

$1,120

Question 244

Evaluation of the cash flow statement should involve an overall assessment of the sources and uses of cash between the three main categories as well as an assessment of the main drivers of cash flow within each category, as follows: 1. Evaluate where the major sources and uses of cash flow are between ___ 2. Evaluate the primary determinants of operating cash flow. 3. Evaluate the primary determinants of investing cash flow. 4. Evaluate the primary determinants of financing cash flow.

Answer 244

operating, investing, and financing activities.

Question 245

Evaluation of the cash flow statement should involve an overall assessment of the sources and uses of cash between the three main categories as well as an assessment of the main drivers of cash flow within each category, as follows: 1. Evaluate where the major sources and uses of cash flow are between operating, investing, and financing activities. 2. Evaluate ___. 3. Evaluate the primary determinants of investing cash flow. 4. Evaluate the primary determinants of financing cash flow.

Answer 245

the primary determinants of operating cash flow

Question 246

Evaluation of the cash flow statement should involve an overall assessment of the sources and uses of cash between the three main categories as well as an assessment of the main drivers of cash flow within each category, as follows: 1. Evaluate where the major sources and uses of cash flow are between operating, investing, and financing activities. 2. Evaluate the primary determinants of operating cash flow. 3. Evaluate ___. 4. Evaluate the primary determinants of financing cash flow.

Answer 246

the primary determinants of investing cash flow

Question 247

Evaluation of the cash flow statement should involve an overall assessment of the sources and uses of cash between the three main categories as well as an assessment of the main drivers of cash flow within each category, as follows: 1. Evaluate where the major sources and uses of cash flow are between operating, investing, and financing activities. 2. Evaluate the primary determinants of operating cash flow. 3. Evaluate the primary determinants of investing cash flow. 4. Evaluate ___.

Answer 247

the primary determinants of financing cash flow

Question 248

Evaluation of the Sources and Uses of Cash 1. Evaluate where the major sources and uses of cash flow are between operating, investing, and financing activities. Major points to consider at this step are: - ___ - Is operating cash fl ow positive and sufficient to cover capital expenditures?

Answer 248

What are the major sources and uses of cash flow?

Question 249

Evaluation of the Sources and Uses of Cash 1. Evaluate where the major sources and uses of cash flow are between operating, investing, and financing activities. Major points to consider at this step are: - What are the major sources and uses of cash flow? - ___

Answer 249

Is operating cash fl ow positive and sufficient to cover capital expenditures?

Question 250

Evaluation of the Sources and Uses of Cash 2. Evaluate the primary determinants of operating cash flow. Major points to consider at this step are: - ___ - Is operating cash fl ow higher or lower than net income? Why? - How consistent are operating cash flows?

Answer 250

What are the major determinants of operating cash flow?

Question 251

Evaluation of the Sources and Uses of Cash 2. Evaluate the primary determinants of operating cash flow. Major points to consider at this step are: - What are the major determinants of operating cash flow? - ___ - How consistent are operating cash flows?

Answer 251

Is operating cash fl ow higher or lower than net income? Why?

Question 252

Evaluation of the Sources and Uses of Cash 2. Evaluate the primary determinants of operating cash flow. Major points to consider at this step are: - What are the major determinants of operating cash flow? - Is operating cash fl ow higher or lower than net income? Why? - ___

Answer 252

How consistent are operating cash flows?

Question 253

In the initial evaluation of the cash flow statement above, it was mentioned that it is desirable that ___ are sufficient to cover capital expenditures. The excess of operating cash flow over capital expenditures is known generically as free cash flow.

Answer 253

operating cash flows

Question 254

In the initial evaluation of the cash flow statement above, it was mentioned that it is desirable that operating cash flows are sufficient to cover ___. The excess of operating cash flow over capital expenditures is known generically as free cash flow.

Answer 254

capital expenditures

Question 255

In the initial evaluation of the cash flow statement above, it was mentioned that it is desirable that operating cash flows are sufficient to cover capital expenditures. ___ is known generically as free cash flow.

Answer 255

The excess of operating cash flow over capital expenditures

Question 256

In the initial evaluation of the cash flow statement above, it was mentioned that it is desirable that operating cash flows are sufficient to cover capital expenditures. The excess of operating cash flow over capital expenditures is known generically as ___.

Answer 256

free cash flow