Question 1

The amount of cash paid for dividends for the current year can be calculated by the following formula:

Accepted Answer

A)   beginning dividends payable minus ending dividends payable plus dividends declared
B)   beginning dividends payable plus ending dividends payable plus dividends declared
C)   beginning dividends payable minus ending dividends payable minus dividends declared
D)   beginning dividends payable plus ending dividends payable minus dividends declaredE) B) and C)
F) None of the above

Question 2

Identify three statement of cash flows user groups and identify what they would be using this statement for.

Accepted Answer

Managers - to assess if the cash flow fr...

Question 3

The indirect method of computing cash flows from operating activities begins with net income and reconciles net income to operating cash flows.

Accepted Answer

A) True 
 B)False

Question 4

Under the indirect method of preparing a statement of cash flows,a decrease in the balance in the Accounts Receivable account during the year is:

Accepted Answer

A)   added in the operating activities section
B)   added in the investing activities section
C)   subtracted in the operating activities section
D)   subtracted in the financing activities sectionE) A) and B)
F) A) and C)

Question 5

The indirect method of preparing the statement of cash flows:

Accepted Answer

A)   is more commonly used in practice than the direct method
B)   is preferred by the Accounting Standards Board over the direct method
C)   produces a different amount for cash flows from operating activities than the direct method
D)   produces a different amount for cash flows from investing activities than the direct methodE) None of the above
F) All of the above

Question 6

Why is the statement of cash flows necessary?

Accepted Answer

Other financial statements give some inf...

Question 7

An increase in common shares would be added into the cash flow from investing activities section of the Statement of Cash Flows.

Accepted Answer

A) True 
 B)False

Question 8

In 2017 Phosphate Aurora Inc.reported an increase in Accounts Receivable of $7,500 and cash collections on account of $430,000.Sales on account for the period were:

Accepted Answer

A)   $7,500
B)   $437,500
C)   $430,000
D)   $422,500E) C) and D)
F) B) and D) B

Question 9

Salary Expense on the income statement was $264,780 for the year ended December 31,2017.The Salary Payable account decreased $24,370 during the same period.The amount of cash payments to employees for the year ended December 31,2017,is:

Accepted Answer

A)   $289,150
B)   $264,780
C)   $240,410
D)   indeterminable from the information givenE) B) and C)
F) C) and D)

Question 10

Omemee Company had the following transactions during the year:
  Determine the cash flows from operations under ASPE:

Accepted Answer

= ($23,000)
= ($36,0...

Question 11

The statement of cash flows is divided into three major sections.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following would not appear on a statement of cash flows prepared using the direct method?

Accepted Answer

A)   cash receipt from repayment of a loan
B)   cash purchase of inventory
C)   depreciation expense
D)   cash payments for operating expensesE) A) and C)
F) All of the above

Question 13

Under ASPE all of the following might appear as adjustments to net income on an indirect method statement of cash flows except:

Accepted Answer

A)   depreciation expense
B)   an increase in Accounts Receivable
C)   gain on sale of capital assets
D)   payment of dividendsE) A) and D)
F) B) and C)

Question 14

Cash collections from customers during the period can be computed as the ending balance in Accounts Receivable plus Sales during the period minus the beginning balance in Accounts Receivable.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following represents the correct order on the statement of cash flows?

Accepted Answer

A)   Investing, operating and then financing activities
B)   Operating, investment then financing activities
C)   Operating, financing then investing activities
D)   Investing, financing then operating activitiesE) A) and B)
F) None of the above

Question 16

Which of the following would not appear on a statement of cash flows?

Accepted Answer

A)   payments to a supplier
B)   cash sales
C)   cost of goods sold
D)   proceeds from issuance of common sharesE) B) and D)
F) A) and B) C

Question 17

The amount of cash dividends declared during the period and the amount of cash dividends paid during the period are reflected in the:

Accepted Answer

A)   income statement and cash flow statement, respectively
B)   statement of shareholders' equity and income statement, respectively
C)   statement of shareholders' equity and the cash flow statement, respectively
D)   cash flow statement and statement of shareholders' equity, respectivelyE) None of the above
F) A) and C)

Question 18

The issuance of common shares in exchange for land and equipment will:

Accepted Answer

A)   affect the financing activities section of a cash flow statement
B)   affect the operating activities section of a cash flow statement
C)   not affect a cash flow statement
D)   affect the investing activities section of a cash flow statementE) A) and B)
F) C) and D) C

Question 19

Omemee Company had the following transactions during the year:
  Determine the cash from financing activities under ASPE:

Accepted Answer

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Question 20

Given the following information calculate JetNew's free cash flow for 2017.

Accepted Answer

Net Cash Flow from O...

Exam 10: The Statement of Cash Flows

The amount of cash paid for dividends for the current year can be calculated by the following formula:

Correct AnswerverifiedShow Answer

Identify three statement of cash flows user groups and identify what they would be using this statement for.

Correct AnswerverifiedManagers - to assess if the cash flow fr...View AnswerShow Answer

The indirect method of computing cash flows from operating activities begins with net income and reconciles net income to operating cash flows.

Correct AnswerverifiedShow Answer

Under the indirect method of preparing a statement of cash flows,a decrease in the balance in the Accounts Receivable account during the year is:

Correct AnswerverifiedShow Answer

The indirect method of preparing the statement of cash flows:

Correct AnswerverifiedShow Answer

Why is the statement of cash flows necessary?

Correct AnswerverifiedOther financial statements give some inf...View AnswerShow Answer

An increase in common shares would be added into the cash flow from investing activities section of the Statement of Cash Flows.

Correct AnswerverifiedShow Answer

In 2017 Phosphate Aurora Inc.reported an increase in Accounts Receivable of $7,500 and cash collections on account of $430,000.Sales on account for the period were:

Correct AnswerverifiedB

Salary Expense on the income statement was $264,780 for the year ended December 31,2017.The Salary Payable account decreased $24,370 during the same period.The amount of cash payments to employees for the year ended December 31,2017,is:

Correct AnswerverifiedShow Answer

Omemee Company had the following transactions during the year: Determine the cash flows from operations under ASPE:

Correct Answerverified= ($23,000)= ($36,0...View AnswerShow Answer

The statement of cash flows is divided into three major sections.

Correct AnswerverifiedShow Answer

Which of the following would not appear on a statement of cash flows prepared using the direct method?

Correct AnswerverifiedShow Answer

Under ASPE all of the following might appear as adjustments to net income on an indirect method statement of cash flows except:

Correct AnswerverifiedShow Answer

Cash collections from customers during the period can be computed as the ending balance in Accounts Receivable plus Sales during the period minus the beginning balance in Accounts Receivable.

Correct AnswerverifiedShow Answer

Which of the following represents the correct order on the statement of cash flows?

Correct AnswerverifiedShow Answer

Which of the following would not appear on a statement of cash flows?

Correct AnswerverifiedC

The amount of cash dividends declared during the period and the amount of cash dividends paid during the period are reflected in the:

Correct AnswerverifiedShow Answer

The issuance of common shares in exchange for land and equipment will:

Correct AnswerverifiedC

Omemee Company had the following transactions during the year: Determine the cash from financing activities under ASPE:

Correct Answerverified_TB5519_00...View AnswerShow Answer

Given the following information calculate JetNew's free cash flow for 2017.

Correct AnswerverifiedNet Cash Flow from O...View AnswerShow Answer

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Managers - to assess if the cash flow fr...
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Other financial statements give some inf...
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B

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= ($23,000)
= ($36,0...
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C

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C

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Net Cash Flow from O...
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