Question : 111. If accounts payable have increased during a period A. revenues an accrual : 1251459

111. If accounts payable have increased during a period 
A. revenues on an accrual basis are less than revenues on a cash basis.
B. expenses on an accrual basis are less than expenses on a cash basis.
C. expenses on an accrual basis are the same as expenses on a cash basis.
D. expenses on an accrual basis are greater than expenses on a cash basis.

112. In calculating cash flows from operating activities using the indirect method, a gain on the sale of equipment is 
A. added to net income.
B. deducted from net income.
C. ignored because it does not affect cash.
D. reported separately as a non-cash investing and financing activity

113. Rogers Company reported net income of $35,000 for the year.  During the year, accounts receivable increased by $7,000, accounts payable decreased by $3,000 and depreciation expense of $8,000 was recorded.  Net cash provided by operating activities for the year is 
A. $53,000.
B. $47,000.
C. $33,000
D. $37,000.

114. On the statement of cash flows, the cash flows from operating activities section would include  
A. receipts from the issuance of capital stock
B. payment for interest on short-term notes payable
C. payments for the purchase of investments
D. payments for cash dividends

115. The cost of merchandise sold during the year was $50,000.  Merchandise inventories were $12,500 and $10,500 at the beginning and end of the year, respectively.  Accounts payable were $6,000 and $5,000 at the beginning and end of the year, respectively.  Using the direct method of reporting cash flows from operating activities, cash payments for merchandise total  
A. $49,000
B. $47,000
C. $51,000
D. $53,000

116. Sales for the year were $600,000. Accounts receivable were $100,000 and $80,000 at the beginning and end of the year.  Cash received from customers to be reported on the cash flow statement using the direct method is  
A. $700,000
B. $600,000
C. $580,000
D. $620,000

117. Operating expenses other than depreciation for the year were $400,000.  Prepaid expenses increased by $17,000 and accrued expenses decreased by $30,000 during the year.  Cash payments for operating expenses to be reported on the cash flow statement using the direct method would be  
A. $353,000
B. $413,000
C. $447,000
D. $383,000

118. The following selected account balances appeared on the financial statements of the Washington Company:
 

Accounts Receivable, Jan. 1$13,000

Accounts Receivable, Dec. 319,000

Accounts Payable, Jan 14,000

Accounts payable Dec. 317,000

Merchandise Inventory, Jan 110,000

Merchandise Inventory, Dec 3115,000

Sales56,000

Cost of Goods Sold31,000

The Washington Company uses the direct method to calculate net cash flow from operating activities.

Cash collections from customers are 
A. $56,000
B. $52,000
C. $60,000
D. $45,000

119. The following selected account balances appeared on the financial statements of the Washington Company:
 

Accounts Receivable, Jan. 1$13,000

Accounts Receivable, Dec. 319,000

Accounts Payable, Jan 14,000

Accounts payable Dec. 317,000

Merchandise Inventory, Jan 110,000

Merchandise Inventory, Dec 3115,000

Sales56,000

Cost of Goods Sold31,000

The Washington Company uses the direct method to calculate net cash flow from operating activities.

Cash paid to suppliers is 
A. $39,000
B. $33,000
C. $29,000
D. $23,000

120. Income tax was $400,000 for the year.  Income tax payable was $30,000 and $40,000 at the beginning and end of the year.  Cash payments for income tax reported on the cash flow statement using the direct method is  
A. $400,000
B. $390,000
C. $430,000
D. $440,000

121. Free cash flow is  
A. all cash in the bank
B. cash from operations
C. cash from financing, less cash used to purchase fixed assets to maintain productive capacity and cash used for dividends
D. cash flow from operations, less cash used to purchase fixed assets to maintain productive capacity and cash used for dividends

122. Free cash flow is cash from operations, less cash for  
A. dividends and cash for fixed assets needed to maintain productivity
B. dividends and cash to redeem bonds payable
C. fixed assets needed to maintain productivity
D. dividends, cash for fixed assets needed to maintain productivity, and cash to redeem bonds payable

123. The cost of merchandise sold during the year was $45,000.  Merchandise inventories were $13,500 and $10,500 at the beginning and end of the year, respectively.  Accounts payable were $7,000 and $5,000 at the beginning and end of the year, respectively.  Using the direct method of reporting cash flows from operating activities, cash payments for merchandise total  
A. $46,000
B. $44,000
C. $50,000
D. $40,000