Statement of Cash Flow Paper 3

1

Dividends paid to shareholders are shown on the statement of cash flows as






2

All of the following are classifications on the statement of cash flows except






3

The sale of available-for-sale securities should be accounted for on the statement of cash flows as a(n)






4

Hauschka Company reported net income for the year of $1,050,000. During the year, accounts receivable decreased $300,000, prepaid expenses increased $150,000, accounts payable for merchandise decreased $150,000, and liabilities for other expenses increased $100,000. Administrative expenses include depreciation expense of $50,000, and the company reported a loss on the sale of obsolete equipment of $10,000. Calculate Hauschka’s net cash flows from operating activities during the year.






5

Garnett Company’s year-end income statement shows the following: Revenues.............. $5,000,000
Selling and general expenses (including depreciation expense of $200,000)............................ 3,800,000
Interest expense ....................................50,000
Gain on sale of equipment....................... 40,000
Income tax expense (including deferred tax expense of $30,000)........................................... 320,000
Net income.......................................... $ 870,000
During the year, Garnett’s noncash current assets rose by $100,000, and current liabilities increased by $150,000. On its statement of cash flows, Garnett would report cash provided by operating activities of






6

Which one of the following would result in a decrease in cash flow measured under the indirect method of preparing a statement of cash flows?






7

A statement of cash flows prepared using the indirect method would have cash activities listed in which one of the following orders?






8

Which one of the following should be classified as a cash flow from an operating activity on the statement of cash flows?






9

The most commonly used method for calculating and reporting a company’s net cash flow from operating activities on its statement of cash flows is the






10

The presentation of the major classes of operating cash receipts (such as receipts from customers) minus the major classes of operating cash disbursements (such as cash paid for merchandise) is best described as the






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