An investment in the stock of another company would appear in which of the follo wing sections of the cash flow

statement? a. b. c. d. Operating section Investing section Financing section It would not appear on the statement.

Which of the following would be shown in the investing section of a cash flow st atement? a. b. c. d. Retirement of long-term debt Retirement of preferred stock Acquisition of treasury stock None of the above

1. 2. 3. 4. 5. 6. 7. 8.

Topic Correct Answers(%) Calculating Cash Flow Cash Flow and Debt Financing Cash Flow and Equity Cash Flow Classification Cash Flow Cycle Cash Flow Transactions Effect on Cash General Cash Flow Statements

14% 100% 75% 56% 50% 100% 100% 44%

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 3 of 40 Time Remaining: 0:37:49 Question: In 2007, XYZ Company had a net loss of $160,000 and reported the following: Dividends paid: $40,000 Depreciation expense: $30,000 Increase in accounts payable: $15,000 Issuance of stock: $100,000 Retirement of debt: $50,000 Given this data, the amount of cash flow from operations was ______________.

a. b. c. d.

($115,000) $205,000 ($75,000) $65,000

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 4 of 40 Time Remaining: 0:36:43 Question: Dividends paid for the year would appear in which of the following sections of t he cash flow statement? a. b. c. d. Operating section Investing section Financing section It would not appear on the statement.

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 5 of 40 Time Remaining: 0:35:58 Question: Acquisition of treasury stock would be shown _____________________. a. as an adjustment to net income for the difference in price paid versus the original issue price b. in the financing section c. in the investing section d. None of the above Flag as inappropriate Powered by

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Changing How the World Works. Item No: 6 of 40 Time Remaining: 0:35:31 Question: Which of the following transactions would be shown on a cash flow statement, but does not affect cash? a. b. c. d. Sale of bonds for cash Exchange of land for stock Collection of customer accounts Payment of dividends to owners

Flag as inappropriate Powered by Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 7 of 40 Time Remaining: 0:34:41 Question: The amortization of a recorded patent would appear in which of the following sec tions of the cash flow statement? a. b. c. d. Operating section Investing section Financing section It would not appear on the statement.

Flag as inappropriate Powered by Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 7 of 40 Time Remaining: 0:34:41 Question: The amortization of a recorded patent would appear in which of the following sec tions of the cash flow statement? a. b. c. d. Operating section Investing section Financing section It would not appear on the statement.

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 8 of 40 Time Remaining: 0:34:11 Question: Warranties payable that increased during the year would appear in which of the f ollowing sections of the cash flow statement? a. b. c. d. Operating section Investing section Financing section It would not appear on the statement.

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 9 of 40 Time Remaining: 0:33:46 Question: New equipment purchased by issuing a long-term note payable would appear in whic h of the following sections of the cash flow statement? a. b. c. d. Operating section Investing section Financing section It would not appear on the statement.

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 10 of 40 Time Remaining: 0:33:05 Question: A payment made from accounts payable will cause cash to ______________ . a. b. c. increase decrease show no change

d. on.

The effect on cash cannot be determined based on given informati

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 11 of 40 Time Remaining: 0:32:38 Question: Cash paid for land would be shown as ________________. a. b. c. d. cash flow from operations cash flow from investing cash flow from financing a non-cash transaction

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 12 of 40 Time Remaining: 0:32:14 Question: An increase in the accounts payable balance would appear in which of the followi ng sections of the cash flow statement? a. b. c. d. Operating section Investing section Financing section It would not appear on the statement

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 13 of 40 Time Remaining: 0:31:54 Question: Cash borrowed from a bank by issuing a short-term note payable would appear in w

hich of the following sections of the cash flow statement? a. b. c. d. Operating section Investing section Financing section It would not appear on the statement.

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 14 of 40 Time Remaining: 0:31:27 Question: Which of the following statements does NOT illustrate a proper interpretation of information in a cash flow statement? a. Capital-intensive firms would likely show a substantially smalle r add-back to net income for depreciation than service firms would show. b. The product life cycle concept provides useful insights into the relation between cash flows from operating, investing, and financing activities . c. The adjustments for changes in operating working capital account s depend in part on a firm's rate of growth. d. All of the above Flag as inappropriate Powered by

Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 15 of 40 Time Remaining: 0:31:05 Question: Equity income from an affiliate would be shown _____________________. a. b. c. d. as an add-back to net income in the operations section as a deduction from net income in the operations section in the investing section None of the above

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 16 of 40 Time Remaining: 0:30:38 Question: Unearned revenue that had been reduced during the year would appear in which of the following sections of the cash flow statement? a. b. c. d. Operating section Investing section Financing section It would not appear on the statement.

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 17 of 40 Time Remaining: 0:30:10 Question: Cash received from the issue of debt would be shown as ____________________. a. b. c. d. cash flow from operations cash flow from investing cash flow from financing a non-cash transaction

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 18 of 40 Time Remaining: 0:29:50 Question: Cash received from sale of investment would be shown on a cash flow statement as ___________. a. b. c. d. cash flow from operations cash flow from investing cash flow from financing a non-cash transaction

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 19 of 40 Time Remaining: 0:29:28 Question: In 2007, XYZ Company had a net income of $100,000 and reported the following acc ount changes on its balance sheet: Accounts Receivable: $6,000 increase Accounts Payable: $2,000 increase Building: $8,000 decrease Accumulated Depreciation: $3,000 increase Bonds Payable: $16,000 increase Given this data, the amount of cash flow from operations was ______________. a. b. c. d. $100,000 $99,000 $119,000 $103,000

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 20 of 40 Time Remaining: 0:29:10 Question: Purchasing inventory with a check will cause cash to ______________ . a. b. c. d. on. Flag as inappropriate Powered by increase decrease show no change The effect on cash cannot be determined based on given informati

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Changing How the World Works. Item No: 21 of 40 Time Remaining: 0:28:46 Question: XYZ Company reported the following information on its balance sheet: 01/01/07 Building: $800,000 Accumulated Depreciation: $200,000 12/31/07 Building: $785,000 Accumulated Depreciation: $225,000 In 2007, the company also purchased a building at a cost of $100,000. Considering the above data, did the company sell any building during the year, a nd if so, what was its original cost? a. b. c. d. No building was sold in 2007. Yes, but its cost cannot be determined. Yes, and its original cost was $85,000. Yes, and its original cost was $115,000.

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 22 of 40 Time Remaining: 0:28:27 Question: In determining cash flow from operations, which of the following would be an add -back to net income? a. b. c. d. Gain on sale of building Loss on sale of building Decrease in inventories All of the above

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 23 of 40 Time Remaining: 0:27:49 Question: Which of the following would be included in the investing section of a cash flow statement? a. Proceeds from sale of equipment

b. c. d.

Proceeds from sale of long-term investments Proceeds from sale of marketable securities All of the above would be included in the investing section.

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 24 of 40 Time Remaining: 0:27:01 Question: Which of the following would be shown in the investing section of a cash flow st atement? a. b. c. d. Acquisition of equipment through a capital lease Acquisition of treasury stock Retirement of long-term debt None of the above

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 25 of 40 Time Remaining: 0:26:27 Question: In most countries, the preparation of a __________________ is a common practice. a. b. c. d. cash flow financing investing statement statement activities statement activities statement of sources and uses of funds

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 26 of 40 Question: Time Remaining: 0:26:00

During 2007, XYZ Company experienced the following changes: Current liabilities: $75,000 increase Non-current liabilities: $45,000 decrease Owners' equity: $51,000 decrease Non-current assets: $42,000 increase Current assets (other than Cash): $18,000 increase Given the above data, the change in cash for 2007 was ____________. a. b. c. d. ($57,000) $30,000 $39,000 ($81,000)

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 27 of 40 Time Remaining: 0:25:44 Question: Depreciation recorded on equipment would appear in which of the following sectio ns of the cash flow statement? a. b. c. d. Operating section Investing section Financing section It would not appear on the statement.

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 28 of 40 Time Remaining: 0:25:25 Question: Which of the following transactions would be shown as a cash flow from financing ? a. b. c. d. Cash Cash Cash Cash paid for received received paid for investments acquisition from sale of property, plant, and equipment from customers dividends

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 29 of 40 Time Remaining: 0:24:54 Question: On their income statement, XYZ Company reported $600,000 in sales, $320,000 in d epreciation expense, $60,000 in income taxes, and $100,000 in other expenses. In addition, $80,000 of common stock was issued for cash during the year. Assuming that the company's non-cash working capital balances did not change during the year, the total amount of cash from operations was ____________. a. b. c. d. $20,000 $100,000 $420,000 $440,000

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 30 of 40 Time Remaining: 0:24:37 Question: Treasury stock purchased for cash would appear in which of the following section s of the cash flow statement? a. b. c. d. Operating section Investing section Financing section It would not appear on the statement.

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 31 of 40 Question: Time Remaining: 0:24:02

Issuing ten-year bonds will cause cash to ______________ . a. b. c. d. on. Flag as inappropriate Powered by increase decrease show no change The effect on cash cannot be determined based on given informati

Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 32 of 40 Time Remaining: 0:23:44 Question: The use of a bond sinking fund to retire a long-term debt at maturity would appe ar in which of the following sections of the cash flow statement? a. b. c. d. Operating section Investing section Financing section It would not appear on the statement.

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 33 of 40 Time Remaining: 0:23:00 Question: When determining cash flow from operations, which of the following would NOT be added back to net income? a. b. c. d. Loss on sale of equipment Equity in affiliate's losses Amortization of bond premium All of the above

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Changing How the World Works. Item No: 34 of 40 Time Remaining: 0:22:30 Question: Preferred stock converted into common stock would appear in which of the followi ng sections of the cash flow statement? a. b. c. d. Operating section Investing section Financing section It would not appear on the statement.

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 35 of 40 Time Remaining: 0:22:01 Question: Salaries paid during the year would appear in which of the following sections of the cash flow statement? a. b. c. d. Operating section Investing section Financing section It would not appear on the statement.

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 36 of 40 Time Remaining: 0:21:31 Question: When determining cash flow from operations, which of the following would NOT be deducted from net income? a. b. c. d. Gain on sale of a building Gain on sale of equipment Gain on sale of marketable securities All of the above

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 37 of 40 Time Remaining: 0:20:55 Question: Which of the following statements about depreciation expense is true? a. Depreciation expense increases the expense for a period but does not use cash. b. When determining funds from operations, depreciation expense tha t had originally been subtracted in computing net income is added back to net in come, but it is not a use of cash. c. Depreciation expense is not a source of funds. d. All of the above statements are true. Flag as inappropriate Powered by

Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 38 of 40 Time Remaining: 0:19:46 Question: Which of the following typically happens during the introduction phase of a prod uct's life cycle? a. b. c. d. Cash outflow exceeds cash inflow from operations. Cash outflow exceeds cash inflow from investing activities. Cash inflow exceeds cash inflow from financing activities. All of the above

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 39 of 40 Time Remaining: 0:19:13 Question: When preparing cash flow statements, the practice of presenting cash from operat ions by listing all cash-generating revenues followed by all cash expenses is ca

lled the ______________. a. b. c. d. direct method operations method indirect method funds method

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Outsource to Freelancers, IT Companies, Programmers, Web Designers from India, R ussia, USA, and more Changing How the World Works. Item No: 40 of 40 Time Remaining: 0:18:27 Question: Equity in the undistributed earnings of a recognized affiliate would appear in w hich of the following sections of the cash flow statement? a. b. c. d. Operating section Investing section Financing section It would not appear on the statement.

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