Question : 51. In determining cash flows from operations under the indirect method, : 1245809

51. In determining cash flows from operations under the indirect method, the adjustments to convert net income to cash flow from operations generally involve ____ the amount by which a revenue exceeds the related cash receipt for the period (such as equity method earnings exceeding dividends). 
A. adding
B. subtracting
C. multiplying
D. dividing
E. cannot be determined from the information provided

52. In determining cash flows from operations under the indirect method, the adjustments to convert net income to cash flow from operations generally involve ____ credit changes in operating working capital accounts, such as accounts receivable, inventories, or accounts payable. 
A. adding
B. subtracting
C. multiplying
D. dividing
E. cannot be determined from the information provided

53. In determining cash flows from operations under the indirect method, the adjustments to convert net income to cash flow from operations generally involve ____ debit changes in operating working capital accounts. 
A. adding
B. subtracting
C. multiplying
D. dividing
E. cannot be determined from the information provided

54. The first step in theprocedure for preparing the statement of cash flows using a T-account work sheet is to 
A. obtain a balance sheet for the beginning of the period of the statement of cash flows.
B. obtain a balance sheet for the ending of the period spanned by the statement of cash flows.
C. obtain a balance sheet for the beginning and the end of the period spanned by the statement of cash flows.
D. obtain an income statement for the beginning of the period of the statement of cash flows.
E. obtain an income statement for the end of the period of the statement of cash flows.

55. In theprocedure for preparing the statement of cash flows using a T-account work sheet, a master T-account for _____ appears at the top of the work sheet. 
A. cash
B. working capital
C. financing
D. operations
E. net income

56. In preparing a T-account work sheet, a master T-account for cash appears at the top of the work sheet. This master T-account has three sections, labeled 
A. Operations, Investing, and Financing.
B. Working Capital, Investing, and Financing.
C. Operations, Working Capital, and Financing
D. Operations, Working Capital, and Investing
E. Operations, Exchanges, and Investing

57. The beginning and the ending balances in cash and cash equivalents are entered in the master T-account for preparing the statement of cash flows. Cash equivalents represent _____ in which a firm has temporarily placed excess cash. 
A. short-term, highly illiquid investments
B. short-term, highly liquid investments
C. short-term and long-term, highly liquid investments
D. short-term and long-term, highly illiquid investments
E. short-term and long-term, marketable securities

58. The second step of completing the T-account work sheet for generating the statement of cash flows is to prepare a T-account for each balance sheet account other than _____ and enter the beginning and the ending balances. 
A. cash and cash equivalents
B. working capital
C. cash, only
D. cash and marketable securities
E. exchanges

59. In order to explain the change in the master cash account between the beginning and the end of the period, the accountant reconstructs the entries originally made in the accounts during the period and enters them in appropriate T-accounts on the T-account work sheet. By explaining the changes in balance sheet accounts other than cash, this process also explains the change in 
A. cash and cash equivalents.
B. cash, only.
C. working capital.
D. cash and marketable securities.
E. funds.

60. In preparing the statement of cash flows for Year 5, internal records indicate that depreciation on manufacturing facilities totaled $500 and on selling and administrative facilities totaled $300 during the year. The firm included these amounts in cost of goods sold and selling and administrative expenses, respectively, in the income statement for Year 5. None of this $800 of depreciation required an operating cash flow during Year 5. The firm reported cash expenditures for these assets as investing activities in the earlier periods when it acquired them. The T-account work sheet entry to explain the change in the Accumulated Depreciation account. 
A. adds back depreciation to net income in deriving cash flow from operations.
B. subtracts depreciation from net income in deriving cash flow from operations.
C. adds back depreciation on the selling and administrative facilities, only, to net income in deriving cash flow from operations.
D. subtracts depreciation on the selling and administrative facilities, only, from net income in deriving cash flow from operations.
E. none of the above