Question :
77. If a loss of $20,000 incurred in selling (for : 1311962
77. If a loss of $20,000 is incurred in selling (for cash) office equipment having a book value of $80,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is
a.$60,000.
b.$80,000.
c.$100,000.
d.$20,000.
78. Madison Company reported net income of $100,000 for the year ended December 31, 2013. During the year, inventories decreased by $12,000, accounts payable decreased by $18,000, depreciation expense was $20,000 and a gain on disposal of equipment of $9,000 was recorded. Net cash provided by operating activities in 2013 using the indirect method was
a.$154,000.
b.$105,000.
c.$112,000.
d.$90,000.
79. The third (final) step in preparing the statement of cash flows is to
a.analyze changes in noncurrent asset and liability accounts.
b.compare the net change in cash with the change in the cash account reported on the balance sheet.
c.determine net cash provided by operating activities.
d.list the noncash activities.
80. Which one of the following items is not necessary in preparing a statement of cash flows?
a.Determine the change in cash
b.Determine the cash provided by operations
c.Determine cash from financing and investing activities
d.Determine the cash in all bank accounts
81. If accounts receivable have increased during the period,
a.revenues on an accrual basis are less than revenues on a cash basis.
b.revenues on an accrual basis are greater than revenues on a cash basis.
c.revenues on an accrual basis are the same as revenues on a cash basis.
d.expenses on an accrual basis are greater than expenses on a cash basis.
82. 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 greater than expenses on a cash basis.
d.expenses on an accrual basis are the same as expenses on a cash basis.
83. Which one of the following affects cash during a period?
a.Recording depreciation expense
b.Declaration of a cash dividend
c.Write-off of an uncollectible account receivable
d.Payment of an accounts payable
84. 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.not reported on a statement of cash flows.
85. Dino Company reported net income of $72,000 for the year. During the year, accounts receivable increased by $7,000, accounts payable decreased by $3,000 and depreciation expense of $5,000 was recorded. Net cash provided by operating activities for the year is
a.$67,000.
b.$87,000.
c.$71,000.
d.$72,000.
86. Fare Company reported a net loss of $31,000 for the year ended December 31, 2013. During the year, accounts receivable decreased $15,000, merchandise inventory increased $24,000, accounts payable increased by $30,000, and depreciation expense of $15,000 was recorded. During 2013, operating activities
a.used net cash of $5,000.
b.used net cash of $23,000.
c.provided net cash of $5,000.
d.provided net cash of $23,000.
