Statement of Cash Flows Flashcards

1
Q

Info

A

Started on 27 August 2014 @3.00 PM
Total questions 59
To do at a time 30,29
Practice session 92

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2
Q

Would bond discount amortization be added back to net income when reporting operating activities’ cash flows by the indirect method?

A

Yes

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3
Q

What activities Inventory and Accounts Payable are

A

Operating Activities
Inventory increase Cash out
Accounts Payable decrease Cash out

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4
Q

prepaid expenses Depreciation expense accrued expenses is what

A

Operating Activity

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5
Q

What activity are Payments to retire mortgage notes and Dividend payments

A

cash outflow from financing activities.

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6
Q

Interest payments on mortgage note is what?

A

Interest payments on mortgage notes are included in cash outflows from operating activities because these payments are included in the determination of net income.

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7
Q

Amortization of the bond discount goes to which section?

A

Operating activities.

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8
Q

Collection of proceeds from a note payable is

A

Financing Activity

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9
Q

Collection of a note receivable from a related party.

A

Investing Activity

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10
Q

Collection of an overdue account receivable from a customer.

A

Operating Activity

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11
Q

Collection of a tax refund from the government.

A

Operating Activity

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12
Q

Cash flows from available-for-sale and held-to-maturity investments are both included

A

in investing activities

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13
Q

Accounts receivable
Allowance for uncollectible accounts
Prepaid rent expense
Accounts payable

A

Operating activity

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14
Q

Gain on sale of plant asset.

A

The operating activities section of the cash flow statement includes those items related to producing goods for sale and providing services. Generally, operating activities are related to net income and the current asset and current liability sections of the balance sheet.

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15
Q

Dividend paid is a

A

Financing activity

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16
Q

How should the amortization of bond discount on long-term debt be reported in a statement of cash flows prepared using the indirect method?

A

In operating activities as an addition to income.

17
Q

Cash effects of acquiring and disposing of investments and property, plant, and equipment.

A

acquiring and disposing of investments and PPE are included in investing activities of the statement of cash flows.

18
Q

Borrowing cash and issuing stock is a

A

Financing Activity

19
Q

interest payments to lenders and other creditors are categorized as

A

Operating activities.

20
Q

What activity is dividend payment.

A

Cash outflows from financing activity.

21
Q

Should we report cash flows per share in statement of cash flows?

A

Cash flows per share should not be reported.

22
Q

Under IFRS bank overdraft should be reported in which activity.

A

Operating activity

23
Q

What activity is collection of a note receivable from a related party.

A

Investing.