Exam 1 (ch. 13 & 14)

Question 1

Cash received from sale of services or merchandise

Answer 1

Operating Activities

Question 2

Cash received from interest income

Answer 2

Operating Activities

Question 3

Cash received from dividend income

Answer 3

Operating Activities

Question 4

Cash paid to purchase inventory

Answer 4

Operating Activities

Question 5

Cash paid for selling, general, and administrative expenses

Answer 5

Operating Activities

Question 6

Cash paid for interest expense

Answer 6

Operating Activities

Question 7

Cash paid for income taxes

Answer 7

Operating Activities

Question 8

Depreciation and amortization expense

Answer 8

Non-cash Adjustments to Net Income

Question 9

Gain or loss on sale of property, plant, or equipment

Answer 9

Non-cash Adjustments to Net Income

Question 10

Cash received from sale of property, plant, or equipment

Answer 10

Investing Activities

Question 11

Cash received from collection of long-term loans

Answer 11

Investing Activities

Question 12

Cash received from sale of long-term equity (stock) investments

Answer 12

Investing Activities

Question 13

Cash paid to purchase property, plant, or equipment

Answer 13

Investing Activities

Question 14

Cash paid for purchasing long-term equity (stock) investments

Answer 14

Investing Activities

Question 15

Cash received from issuing long-term debt (such as notes and bonds)

Answer 15

Finacing Activities

Question 16

Cash received from issuing stock

Answer 16

Finacing Activities

Question 17

Cash received from using a line of credit

Answer 17

Finacing Activities

Question 18

Cash used to pay back long-term debt

Answer 18

Finacing Activities

Question 19

Cash used to pay dividends

Answer 19

Finacing Activities

Question 20

Cash used to buy back company stock (treasury stock)

Answer 20

Finacing Activities

Question 21

lists the receipt and payment of cash for specific operating activities

Answer 21

Direct Method

Question 22

begins with net income and reconciles it back to cash basis through adjustments

Answer 22

Indirect Method

Question 23

What information do you need to prepare the Statment of Cash Flow?

Answer 23

Income statement for the current year
Comparative balance sheets
Miscellaneous additional information relating to investing and financing