Question :
71. U.S. GAAP requires the disclosure of the acquisition of a : 1245953
71. U.S. GAAP requires the disclosure of the acquisition of a building by assuming a mortgage obligation
A. as both a financing activity and an operating activity.
B. as both an operating activity and an investing activity.
C. as both an investing activity and a financing activity.
D. in a separate schedule or note, but does not appear in the statement of cash flows as an operating activity, investing activity or a financing activity.
E. as both an investing activity and a exchange activity.
72. U.S. GAAP requires the classification of
A. the receipt of cash from interest and dividend revenues as an operating activity and cash related to the purchase and sale of long-term investments in securities as an investing activity.
B. both receipt of cash from interest and dividend revenues and cash related to the purchase and sale of investments in securities as an investing activity.
C. both receipt of cash from interest and dividend revenues and cash related to the purchase and sale of long-term investments in securities as an operating activity.
D. both receipt of cash from interest and dividend revenues and cash related to the purchase and sale of investments in securities as a financing activity.
E. both receipt of cash from interest and dividend revenues and cash related to the purchase and sale of long-term investments in securities as an exchange activity.
73. U.S. GAAP requires the disclosure of the direct exchange (with no cash consideration) of a tract of land for manufacturing equipment to be used in the company’s operations
A. as an operating activity.
B. as an investing activity.
C. as a financing activity.
D. as an exchange activity.
E. in a separate schedule or note, but does not appear in the statement of cash flows as an operating activity, investing activity, or a financing activity.
74. The _____ displays (lists) cash receipts and disbursements from operating activities.
A. bottom-up method
B. top-down method
C. indirect method
D. direct method
E. cash method
75. Under both U.S. GAAP and IFRS, nonmonetary transactions do not appear in the statement of cash flows as investing or financing activities, because they do not help in explaining the change in cash. Firms must disclose nonmonetary investing and financing activities in _____.
A. the body of the statement of cash flows, only
B. a separate schedule, only
C. a note, only
D. the body of the statement of cash flows, in a separate schedule, or in a note
E. none of the above
76. In a statement of cash flows, payments to acquire long-term bonds or other debt instruments with maturities greater than one year of other entities should be classified as cash outflows for
A. operating activities.
B. financing activities.
C. investing activities.
D. lending activities.
E. exchange transactions.
77. Barkley Inc.’s record keeping system incorporates the appropriate classification codes into the initial recording of transactions in the Cash account and then prepares the statement of cash flows. One can prepare the statement of cash flows by examining every transaction affecting the cash account, and classifying each as
A. a cash receipts, cash disbursements, or financing activity.
B. an operating, investing, or financing activity.
C. a cash receipts, cash disbursements, or investing activity.
D. a cash receipts, cash disbursements, or operating activity.
E. a cash receipts, cash disbursements, or exchange activity.
78. Which of the following statements is/are not true?
A. The statement of cash flows reports flows, or changes in cash over time.
B. The balance sheet reports changes in the amounts of cash over time.
C. The last few lines of each statement of cash flows report the amount of cash on each firm’s balance sheet at the beginning and the end of each period.
D. Both U.S. GAAP and IFRS require that the statement of cash flows explain changes in cash and cash equivalents.
E. All of the above are not true.
79. The balance sheet reports
A. the shortfall in cash at the beginning of the year.
B. the balance in cash at the end of the year.
C. how cash changed during the period.
D. how a firm obtains and uses cash.
E. both choices a and b.
80. The income statement
A. measures the increase (or decrease) in net assets from selling goods and services for more (or less) than their costs.
B. displays the firm’s sources and uses of cash.
C. reports the balance in cash at the beginning and end of the year.
D. helps a reader understand how a firm obtains and uses cash.
E. includes all of the above.
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