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Negative free cash flow does not automatically signal poor performance.

A) True
B) False

Correct Answer

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In the statement of cash flows, collecting cash from customers is treated as a cash inflow in the financing activities section.

A) True
B) False

Correct Answer

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Under the indirect method of determining the net cash provided by operating activities on the statement of cash flows, an increase in property, plant, and equipment is subtracted from net income.

A) True
B) False

Correct Answer

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Which of the following would be classified as a financing activity on the statement of cash flows?


A) Paying suppliers for inventory purchases.
B) Interest paid to lenders.
C) Lending money to another company.
D) Repurchasing capital stock from owners.

E) B) and D)
F) A) and C)

Correct Answer

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Kaeser Corporation's most recent balance sheet appears below: Kaeser Corporation's most recent balance sheet appears below: The company's net income for the year was $52 and it did not sell or retire any property, plant, and equipment during the year. Cash dividends were $9. The net cash provided by (used in) investing activities for the year was: A) $17 B) $67 C) ($17) D) ($67) The company's net income for the year was $52 and it did not sell or retire any property, plant, and equipment during the year. Cash dividends were $9. The net cash provided by (used in) investing activities for the year was:


A) $17
B) $67
C) ($17)
D) ($67)

E) B) and C)
F) C) and D)

Correct Answer

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The following events occurred last year at Dorder Corporation: The following events occurred last year at Dorder Corporation: Based on the above information, the cash provided (used) by investing activities for the year on the statement of cash flows would net to: A) $(21,000) B) $(12,000) C) $(32,000) D) $(69,000) Based on the above information, the cash provided (used) by investing activities for the year on the statement of cash flows would net to:


A) $(21,000)
B) $(12,000)
C) $(32,000)
D) $(69,000)

E) None of the above
F) All of the above

Correct Answer

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Belk Corporation's balance sheet appears below: Belk Corporation's balance sheet appears below: The net income for the year was $126. Cash dividends were $21. The company did not dispose of any property, plant, and equipment, issue any bonds payable, or repurchase any of its own common stock during the year. Required: Prepare a statement of cash flows in good form using the indirect method. The net income for the year was $126. Cash dividends were $21. The company did not dispose of any property, plant, and equipment, issue any bonds payable, or repurchase any of its own common stock during the year. Required: Prepare a statement of cash flows in good form using the indirect method.

Correct Answer

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Beltram Corporation's balance sheet and income statement appear below: Beltram Corporation's balance sheet and income statement appear below: The company did not dispose of any property, plant, and equipment, issue any bonds payable, or repurchase any of its own common stock during the year. The company declared and paid a cash dividend of $13. Required: Prepare a statement of cash flows in good form using the indirect method. Beltram Corporation's balance sheet and income statement appear below: The company did not dispose of any property, plant, and equipment, issue any bonds payable, or repurchase any of its own common stock during the year. The company declared and paid a cash dividend of $13. Required: Prepare a statement of cash flows in good form using the indirect method. The company did not dispose of any property, plant, and equipment, issue any bonds payable, or repurchase any of its own common stock during the year. The company declared and paid a cash dividend of $13. Required: Prepare a statement of cash flows in good form using the indirect method.

Correct Answer

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Tani Corporation's most recent balance sheet appears below: Tani Corporation's most recent balance sheet appears below: The company's net income for the year was $18 and it did not sell or retire any property, plant, and equipment during the year. Cash dividends were $4. The net cash provided by (used in) investing activities for the year was: A) ($45) B) $45 C) ($3) D) $3 The company's net income for the year was $18 and it did not sell or retire any property, plant, and equipment during the year. Cash dividends were $4. The net cash provided by (used in) investing activities for the year was:


A) ($45)
B) $45
C) ($3)
D) $3

E) A) and B)
F) A) and D)

Correct Answer

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Birchett Corporation's most recent balance sheet appears below: Birchett Corporation's most recent balance sheet appears below: The company's net income for the year was $91 and it did not sell or retire any property, plant, and equipment during the year. Cash dividends were $22. The net cash provided by (used in) operating activities for the year was: A) $86 B) $5 C) $96 D) $130 The company's net income for the year was $91 and it did not sell or retire any property, plant, and equipment during the year. Cash dividends were $22. The net cash provided by (used in) operating activities for the year was:


A) $86
B) $5
C) $96
D) $130

E) A) and B)
F) A) and C)

Correct Answer

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Degeare Corporation's balance sheet and income statement appear below: Degeare Corporation's balance sheet and income statement appear below: Cash dividends were $10. The company sold equipment for $18 that was originally purchased for $10 and that had accumulated depreciation of $5. The net cash provided by (used in) operating activities for the year was: A) $73 B) $76 C) $43 D) $63 Degeare Corporation's balance sheet and income statement appear below: Cash dividends were $10. The company sold equipment for $18 that was originally purchased for $10 and that had accumulated depreciation of $5. The net cash provided by (used in) operating activities for the year was: A) $73 B) $76 C) $43 D) $63 Cash dividends were $10. The company sold equipment for $18 that was originally purchased for $10 and that had accumulated depreciation of $5. The net cash provided by (used in) operating activities for the year was:


A) $73
B) $76
C) $43
D) $63

E) A) and C)
F) B) and C)

Correct Answer

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Under the indirect method of determining the net cash provided by operating activities on the statement of cash flows, an increase in accounts receivable would be subtracted from net income.

A) True
B) False

Correct Answer

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Stone Retail Corporation's most recent comparative Balance Sheet is as follows: Stone Retail Corporation's most recent comparative Balance Sheet is as follows: Stone's net income was $46,000. No equipment was sold or purchased. Cash dividends of $40,000 were declared and paid. Stone uses the indirect method to prepare its statement of cash flows. -What is Stone's net cash provided by (used in) financing activities? A) $(20,000) B) $(15,000) C) $5,000 D) $65,000 Stone's net income was $46,000. No equipment was sold or purchased. Cash dividends of $40,000 were declared and paid. Stone uses the indirect method to prepare its statement of cash flows. -What is Stone's net cash provided by (used in) financing activities?


A) $(20,000)
B) $(15,000)
C) $5,000
D) $65,000

E) B) and C)
F) C) and D)

Correct Answer

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When computing the net cash provided by operating activities under the indirect method on the statement of cash flows, an increase in prepaid expenses would be added to net income.

A) True
B) False

Correct Answer

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Paying wages and salaries to employees is classified as a cash outflow in the operating activities section of the statement of cash flows.

A) True
B) False

Correct Answer

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Thunder Corporation's balance sheet and income statement appear below: Thunder Corporation's balance sheet and income statement appear below: The company did not dispose of any property, plant, and equipment, issue any bonds payable, or repurchase any of its own common stock during the year. The company declared and paid a cash dividend of $24. Required: Prepare a statement of cash flows in good form using the indirect method. Thunder Corporation's balance sheet and income statement appear below: The company did not dispose of any property, plant, and equipment, issue any bonds payable, or repurchase any of its own common stock during the year. The company declared and paid a cash dividend of $24. Required: Prepare a statement of cash flows in good form using the indirect method. The company did not dispose of any property, plant, and equipment, issue any bonds payable, or repurchase any of its own common stock during the year. The company declared and paid a cash dividend of $24. Required: Prepare a statement of cash flows in good form using the indirect method.

Correct Answer

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Marbry Corporation's balance sheet and income statement appear below: Marbry Corporation's balance sheet and income statement appear below: Cash dividends were $21. The company did not issue any bonds or repurchase any of its own common stock during the year. The net cash provided by (used in) financing activities for the year was: A) $4 B) ($22) C) ($5) D) ($21) Marbry Corporation's balance sheet and income statement appear below: Cash dividends were $21. The company did not issue any bonds or repurchase any of its own common stock during the year. The net cash provided by (used in) financing activities for the year was: A) $4 B) ($22) C) ($5) D) ($21) Cash dividends were $21. The company did not issue any bonds or repurchase any of its own common stock during the year. The net cash provided by (used in) financing activities for the year was:


A) $4
B) ($22)
C) ($5)
D) ($21)

E) A) and D)
F) None of the above

Correct Answer

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Paying taxes to governmental bodies is considered a cash outflow in the operating activities section on the statement of cash flows.

A) True
B) False

Correct Answer

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Randal Corporation recorded the following activity for the year just ended: Randal Corporation recorded the following activity for the year just ended: -The net cash provided by (used in) investing activities for the year was: A) $100,000 B) $(100,000) C) $(400,000) D) $400,000 -The net cash provided by (used in) investing activities for the year was:


A) $100,000
B) $(100,000)
C) $(400,000)
D) $400,000

E) All of the above
F) A) and B)

Correct Answer

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The most recent balance sheet and income statement of Penaloza Corporation appear below: The most recent balance sheet and income statement of Penaloza Corporation appear below: The company paid a cash dividend of $18. It did not dispose of any property, plant, and equipment. The company did not retire any bonds payable or repurchase any of its own common stock. The following question pertain to the company's statement of cash flows. -The net cash provided by (used in) financing activities for the year was: A) $(18) B) $5 C) $(5) D) $8 The most recent balance sheet and income statement of Penaloza Corporation appear below: The company paid a cash dividend of $18. It did not dispose of any property, plant, and equipment. The company did not retire any bonds payable or repurchase any of its own common stock. The following question pertain to the company's statement of cash flows. -The net cash provided by (used in) financing activities for the year was: A) $(18) B) $5 C) $(5) D) $8 The company paid a cash dividend of $18. It did not dispose of any property, plant, and equipment. The company did not retire any bonds payable or repurchase any of its own common stock. The following question pertain to the company's statement of cash flows. -The net cash provided by (used in) financing activities for the year was:


A) $(18)
B) $5
C) $(5)
D) $8

E) All of the above
F) A) and D)

Correct Answer

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Showing 101 - 120 of 132

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