Statement of Cash Flows

Question 1

Info

Answer 1

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

Question 2

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

Answer 2

Yes

Question 3

What activities Inventory and Accounts Payable are

Answer 3

Operating Activities
Inventory increase Cash out
Accounts Payable decrease Cash out

Question 4

prepaid expenses Depreciation expense accrued expenses is what

Answer 4

Operating Activity

Question 5

What activity are Payments to retire mortgage notes and Dividend payments

Answer 5

cash outflow from financing activities.

Question 6

Interest payments on mortgage note is what?

Answer 6

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

Question 7

Amortization of the bond discount goes to which section?

Answer 7

Operating activities.

Question 8

Collection of proceeds from a note payable is

Answer 8

Financing Activity

Question 9

Collection of a note receivable from a related party.

Answer 9

Investing Activity

Question 10

Collection of an overdue account receivable from a customer.

Answer 10

Operating Activity

Question 11

Collection of a tax refund from the government.

Answer 11

Operating Activity

Question 12

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

Answer 12

in investing activities

Question 13

Accounts receivable
Allowance for uncollectible accounts
Prepaid rent expense
Accounts payable

Answer 13

Operating activity

Question 14

Gain on sale of plant asset.

Answer 14

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.

Question 15

Dividend paid is a

Answer 15

Financing activity

Question 16

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

Answer 16

In operating activities as an addition to income.

Question 17

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

Answer 17

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

Question 18

Borrowing cash and issuing stock is a

Answer 18

Financing Activity

Question 19

interest payments to lenders and other creditors are categorized as

Answer 19

Operating activities.

Question 20

What activity is dividend payment.

Answer 20

Cash outflows from financing activity.

Question 21

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

Answer 21

Cash flows per share should not be reported.

Question 22

Under IFRS bank overdraft should be reported in which activity.

Answer 22

Operating activity

Question 23

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

Answer 23

Investing.