Statement of Cash Flow MCQs

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A statement of cash flows is intended to help users of financial statements






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Which of the following items is specifically included in the body of a statement of cash flows?






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With respect to the content and form of the statement of cash flows, the






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Depreciation expense is added to net income under the indirect method of preparing a statement of cash flows in order to






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All of the following should be classified under the operating section in a statement of cash flows except a






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Which one of the following transactions should be classified as a financing activity in a statement of cash flows?






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Kelli Company acquired land by assuming a mortgage for the full acquisition cost. This transaction should be disclosed on Kelli’s statement of cash ...






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Which one of the following transactions should not be classified as a financing activity in the statement of cash flows?






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All of the following should be classified as investing activities in the statement of cash flows except






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All of the following should be included in the reconciliation of net income to net operating cash flow in the statement of cash flows except a(n)






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In preparing a statement of cash flows, an item included in determining net cash flow from operating activities is the






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The information reported in the statement of cash flows should help investors, creditors, and others to assess all of the following except the






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To calculate cash flows using the indirect method, which one of the following items must be added back to net income?






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The net income for Cypress, Inc., was $3,000,000 for the year ended December 31. Additional information is as follows: Depreciation on fixed assets....






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Fact Pattern: Royce Company had the following transactions during the fiscal year ended December 31, Year 2: ? Accounts receivable decreased from $115...






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Royce Company had the following transactions during the fiscal year ended December 31, Year 2: ? Accounts receivable decreased from $115,000 on Decemb...






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Royce Company had the following transactions during the fiscal year ended December 31, Year 2: ? Accounts receivable decreased from $115,000 on Decemb...






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The following information was taken from the accounting records of Oak Corporation for the year ended December 31: Proceeds from issuance of preferre...






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Zip Company entered into the following transactions during the year: ? Purchased stock for $200,000 ? Purchased electronic equipment for use on the ma...






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When using the statement of cash flows to evaluate a companys continuing solvency, the most important factor to consider is the cash






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






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






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






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Hauschka Company reported net income for the year of $1,050,000. During the year, accounts receivable decreased $300,000, prepaid expenses increased $...






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Garnett Company’s year-end income statement shows the following: Revenues.............. $5,000,000 Selling and general expenses (including depreciat...






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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?






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






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






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






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The presentation of the major classes of operating cash receipts (such as receipts from customers) minus the major classes of operating cash disbursem...






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Larry Mitchell, Bailey Companys controller, is gathering data for the statement of cash flows for the most recent year end. Mitchell is planning to u...






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During the year, Deltech, Inc., acquired a long-term productive asset for $5,000 and also borrowed $10,000 from a local bank. These transactions shoul...






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Atwater Company has recorded the following payments for the current period: Purchase Trillium stock........................... $300,000 Dividends paid...






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Carlson Company has the following payments recorded for the current period: Dividends paid to Carlson shareholders... $150,000 Interest paid on bank l...






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Barber Company has recorded the following payments for the current period: Interest paid on bank loan .................$300,000 Dividends paid to Barb...






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Selected financial information for Kristina Company for the year just ended is shown below. Net income........................................ $2,000,...






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Selected financial information for Kristina Company for the year just ended is shown below. Net income........................................ $2,000,...






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For the fiscal year just ended, Doran Electronics had the following results: Net income....................................... $920,000 Depreciation e...






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Three years ago, Jameson Company purchased stock in Zebra, Inc., at a cost of $100,000. This stock was sold for $150,000 during the current fiscal yea...






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Madden Corporation’s controller has gathered the following information as a basis for preparing the statement of cash flows. Net income for the curr...






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Selected financial information for Kristina Company for the year just ended is shown below. Net income.................................... $2,000,000...






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At December 31, year 1, Kale Co. had the following balances in the accounts it maintains at First State Bank: Checking account #101 $175,000 Checki...






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The primary purpose of a statement of cash flows is to provide relevant information about






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Mend Co. purchased a three-month US Treasury bill. Mends policy is to treat as cash equivalents all highly liquid investments with an original matu...






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Alp, Inc. had the following activities during year 1: Acquired 2,000 shares of stock in Maybel, Inc. for $26,000. Alp intends to hold the stock as...






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In a statement of cash flows, if used equipment is sold at a gain, the amount shown as a cash inflow from investing activities equals the carrying a...






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On September 1, year 1, Canary Co. sold used equipment for a cash amount equaling its carrying amount for both book and tax purposes. On September 1...






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A company acquired a building, paying a portion of the purchase price in cash and issuing a mortgage note payable to the seller for the balance. In...






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A company acquired a building, paying a portion of the purchase price in cash and issuing a mortgage note payable to the seller for the balance. In...






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On July 1, year 1, Dewey Co. signed a twenty-year building lease that it reported as a capital lease. Dewey paid the monthly lease payments when due...






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Which of the following should be reported when preparing a statement of cash flows? Conversion of long-term debt to common stock Conversion of pref...






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Which of the following information should be disclosed as supplemental information in the statement of cash flows? Cash flow per share Conversion o...






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Which of the following is not disclosed on the statement of cash flows when prepared under the direct method, either on the face of the statement or...






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In a statement of cash flows, which of the following would increase reported cash flows from operating activities using the direct method? (Ignore i...






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A companys wages payable increased from the beginning to the end of the year. In the companys statement of cash flows in which the operating activ...






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In a statement of cash flows (using indirect approach for operating activities) an increase in inventories should be presented as a(n)






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How should a gain from the sale of used equipment for cash be reported in a statement of cash flows using the indirect method?






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Would the following be added back to net income when reporting operating activities cash flows by the indirect method? Excess of treasury stock acq...






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Which of the following should not be disclosed in an enterprises statement of cash flows prepared using the indirect method?






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Rice Corporation prepares its financial statements in accordance with IFRS. Rice must report amounts paid for interest on a note payable on the stat...






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Filigree Corporation prepares its financial statements in accordance with IFRS. Filigree acquired equipment by issuing 5,000 shares of its common st...






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Cash equivalents have each of the following characteristics except:






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Which of the following statements is untrue regarding the statement of cash flows?






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Stock dividends are reported in connection with a statement of cash flows as:






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Property dividends are reported in connection with a statement of cash flows as:






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Interest paid to bondholders is reported in connection with a statement of cash flows as:






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Investment revenue is reported in connection with a statement of cash flows as:






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On January 4, Childers Corporation issued $200 million of bonds for $193 million. During the same year, $500,000 of the bond discount was amortized. O...






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Sun Company owns 14.5 million shares of stock of Center Company classified as available for sale. During 2016, the fair value of those shares increase...






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Eastern Manufacturing Company owns 40% of the outstanding common stock of Southern Supply Company. During 2016, Eastern received a $50 million cash di...






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In determining cash flows from operating activities (indirect method), adjustments to net income should not include:






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The net income for World Class Corporation was $140 million for the year ended December 31, 2016. Related information follows: Amortization of pate...






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A statement of cash flows and its related disclosure note typically do not report:






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Sean-McDonald Company sold a printer with a cost of $34,000 and accumulated depreciation of $21,000 for $10,000 cash. This transaction would be report...






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In a statement of cash flows (indirect method), a decrease in inventory should be reported as:






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In a statement of cash flows (indirect method), an increase in available-for-sale securities should be reported as:






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If sales revenue is $20 million and accounts receivable increased by $3 million, the amount of cash received from customers:






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Sales revenue for Marshall Matches was $240,000. The following data are from the accounting records of Marshall: Accounts Receivable, Jan. 1: $52,0...






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Selected information from Mercer Corporation’s accounting records and financial statements for 2016 is as follows ($ in millions): Cash paid to a...






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Selected information from Phillips Corporation’s accounting records and financial statements for 2016 is as follows ($ in millions): Cash paid to...






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Consistent with U.S. GAAP, IFRS classifies cash flows as operating, investing, or financing. However, U.S. GAAP designates cash outflows for interest ...






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A company can report interest payments and interest received as operating cash flows using






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If bond interest expense is $400,000, bond interest payable increased by $4,000 and bond discount decreased by $1,000, cash paid for bond interest is:...






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A company can report interest received and dividends received as investing activities using






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In the statement of cash flows, inflows and outflows of cash from buying and selling trading securities typically are considered: