Question 1

A main purpose of the statement of cash flows is to report all the major cash ________ and cash _______________.

Accepted Answer

answers can appear in any order

Question 2

___________________ activities generally include those transactions and events that affect long-term assets.

Accepted Answer

The answer of ___________________ activities generally include those transactions and...

Question 3

When preparing the operating section of the statement of cash flows using the indirect method,noncash expenses are _____________ net income.

Accepted Answer

The answer of When preparing the operating section of the...

Question 4

The following transactions and events occurred during the year.Assuming that this company uses the indirect method to report cash provided by operating activities,indicate where each item would appear on its statement of cash flows by placing an x in the appropriate column.

Accepted Answer

The answer of The following transactions and events occurred during...

Question 5

The reporting of investing and financing activities is _________________ under the direct and indirect methods of preparing the statement of cash flows.

Accepted Answer

The answer of The reporting of investing and financing activities...

Question 6

The FASB requires a reconciliation of net income to net cash provided or used by operating activities when the ______________ method is used.

Accepted Answer

The answer of The FASB requires a reconciliation of net...

Question 7

_____________ activities include the cash effects of transactions and events that determine net income.

Accepted Answer

The answer of _____________ activities include the cash effects of...

Question 8

Investments that are readily convertible to a known amount of cash and are sufficiently close to their maturity so that the market value is unaffected by interest rate changes are ______________________________.

Accepted Answer

The answer of Investments that are readily convertible to a...

Question 9

The statement of cash flows is divided into three sections called the _____________,_____________,and _______________ sections.

Accepted Answer

answers can appear in any order

Question 10

___________________ activities include those transactions that affect long-term liabilities and equity.

Accepted Answer

The answer of ___________________ activities include those transactions that affect...

Question 11

All cash transactions eventually affect noncash ___________ accounts.

Accepted Answer

The answer of All cash transactions eventually affect noncash ___________...

Question 12

The cash flow on total assets ratio is computed by dividing _____________ by ____________.

Accepted Answer

The answer of The cash flow on total assets ratio...

Question 13

Noncash financing and investing activities are disclosed in the ____________ or in a separate ______________________________.

Accepted Answer

answers can appear in any order

Question 14

Use the following financial statements and additional information to (1)prepare a complete statement of cash flows for the year ended December 31,2013.The cash provided or used by operating activities should be reported using the direct method,and (2)compute the company's cash flow on total assets ratio for 2013.
   Additional Information
a.A $20,000 note payable is retired at its carrying value in exchange for cash.
b.The only changes affecting retained earnings are net income and cash dividends paid.
c.New equipment is acquired for $120,000 cash.
d.Received cash for the sale of equipment that had cost $85,000,yielding a gain of $4,700.
e.Prepaid expenses relate to Other Expenses on the income statement.
f.All purchases and sales of merchandise inventory are on credit.

Accepted Answer

The answer of Use the following financial statements and additional...

Question 15

Use the following financial statements and additional information to (1)prepare a statement of cash flows for the year ended December 31,2013 using the indirect method,and (2)compute the company's cash flow on total assets ratio for 2013.
   Additional Information
a.A $20,000 note payable is retired at its carrying value in exchange for cash.
b.The only changes affecting retained earnings are net income and cash dividends paid.
c.New equipment is acquired for $120,000 cash.
d.Received cash for the sale of equipment that had cost $85,000,yielding a gain of $4,700.
e.Prepaid expenses relate to Other Expenses on the income statement.
f.All purchases and sales of merchandise inventory are on credit.

Accepted Answer

The answer of Use the following financial statements and additional...

Question 16

The use of a spreadsheet for analysis is especially useful when preparing the statement of cash flows using the _____________ method.

Accepted Answer

The answer of The use of a spreadsheet for analysis...

Question 17

Probably the most important section of the statement of cash flows in analyzing the financial performance of a company's ongoing business is the ____________ section.

Accepted Answer

The answer of Probably the most important section of the...

Question 18

Match between columns
                        Premises: A financial statement that reports the cash inflows and cash outflows for an accounting period,and classifies those cash flows as operating,investing,or financing activities.
Transactions with a company's owners and creditors that include obtaining cash from issuing debt and repaying the amounts borrowed,and obtaining cash from or distributing cash to owners.
Transactions that include making and collecting notes receivable or purchasing and selling plant assets,or investments in other than cash equivalents and trading securities.
A calculation of the net cash provided (used.by operating activities that lists the major items of operating cash receipts,and then subtracts the major items of operating cash payments.
Activities that involve the production or purchase of merchandise and the sale of goods or services to customers,including expenditures related to administering the business.
A calculation that reports net income and then adjusts the net income amount by adding and subtracting items that are necessary to yield net cash provided (used.by operating activities.

Accepted Answer

The Answer of Operating activities and Statement of cash flows is...

Quiz 16: Reporting the Statement of Cash Flows

A main purpose of the statement of cash flows is to report all the major cash and cash _______.

___________________ activities generally include those transactions and events that affect long-term assets.

When preparing the operating section of the statement of cash flows using the indirect method,noncash expenses are _____________ net income.

The following transactions and events occurred during the year.Assuming that this company uses the indirect method to report cash provided by operating activities,indicate where each item would appear on its statement of cash flows by placing an x in the appropriate column.

The reporting of investing and financing activities is _________________ under the direct and indirect methods of preparing the statement of cash flows.

The FASB requires a reconciliation of net income to net cash provided or used by operating activities when the ______________ method is used.

_____________ activities include the cash effects of transactions and events that determine net income.

Investments that are readily convertible to a known amount of cash and are sufficiently close to their maturity so that the market value is unaffected by interest rate changes are ______________________________.

The statement of cash flows is divided into three sections called the _______,_,and _________ sections.

___________________ activities include those transactions that affect long-term liabilities and equity.

All cash transactions eventually affect noncash ___________ accounts.

The cash flow on total assets ratio is computed by dividing _ by .

Noncash financing and investing activities are disclosed in the or in a separate __________________.

The use of a spreadsheet for analysis is especially useful when preparing the statement of cash flows using the _____________ method.

Probably the most important section of the statement of cash flows in analyzing the financial performance of a company's ongoing business is the ____________ section.

Match each of the following items with the appropriate definitions.