Question : 81. The cash flow total assets ratio: A. Is the same as return : 1225356

81. The cash flow on total assets ratio: 

A. Is the same as return on assets.

B. Is the same as profit margin.

C. Can be an indicator of earnings quality.

D. Is highly affected by accounting principles of income recognition and measurement.

E. Is average net assets divided by cash flows from operations.

82. The cash flow on total assets ratio is calculated by: 

A. Dividing cash flows from operations by average total assets.

B. Dividing total cash flows by average total assets.

C. Dividing average total assets by cash flows from investing activities.

D. Dividing average total assets by total cash flows.

E. Total cash flows divided by average total assets times 365.

83. A company had net cash flows from operations of $120,000, cash flows from financing of $330,000, total cash flows of $500,000, and average total assets of $2,500,000. The cash flow on total assets ratio equals: 

A. 4.8%.

B. 5.0%.

C. 20.0%.

D. 20.8%.

E. 24.0%.

84. A company had average total assets of $1,760,000, total cash flows of $1,320,000, cash flows from operations of $205,000, and cash flows from financing of $850,000. The cash flow on total assets ratio equals: 

A. 1.33%.

B. 8.58%.

C. 11.65%.

D. 15.5%.

E. 75%.

85. Preparation of the statement of cash flows involves: 

A. Computing the net increase or decrease in cash.

B. Computing and reporting net cash provided or used by operations.

C. Computing and reporting net cash provided or used by investing activities.

D. Computing and reporting net cash provided or used by financing activities.

E. All of these.

86. The reporting of net cash provided or used by operating activities that lists the major items of operating cash receipts, such as receipts from customers, and subtracts the major items of operating cash disbursements, such as cash paid for merchandise, is referred to as the: 

A. Direct method of reporting net cash provided or used by operating activities.

B. Cash basis of accounting.

C. Classified statement of cash flows.

D. Indirect method of reporting net cash provided or used by operating activities.

E. Net method of reporting cash flows from operating activities.

87. A statement of cash flows should reconcile the differences between the beginning and ending balances of: 

A. Net income.

B. Equity.

C. Cash and cash equivalents.

D. Working capital.

E. Cash, cash equivalents, and short-term investments.

88. The direct method for the preparation of the operating activities section of the statement of cash flows: 

A. Separately lists each major item of operating cash receipts and cash payments.

B. Reports adjustments to reconcile net income to net cash provided or used by operating activities in the statement.

C. Reports a different amount of cash flows from operations than if the indirect method is used.

D. Is required if the company is a merchandiser.

E. Is required by the FASB.

89. The indirect method for the preparation of the operating activities section of the statement of cash flows: 

A. Separately lists each major item of operating cash receipts.

B. Separately lists each major item of operating cash payments.

C. Reports net income and then adjusts it for items necessary to determine net cash provided or used by operating activities.

D. Is required if the company is a merchandiser.

E. Must not be used in all circumstances.

90. The direct method of reporting operating cash flows: 

A. Is recommended but not required by the FASB.

B. Must be used by all companies.

C. Is used by most companies.

D. Is considered supplementary disclosure.

E. Is not recommended by the FASB, but is commonly used.