Question :
Multiple Choice Questions
25.Interest expense shown as:
A. an operating activity the statement : 1254284
Multiple Choice Questions
25.Interest expense is shown as:
A. an operating activity on the statement of cash flows and a non-operating item on the income statement.
B. an operating item on the income statement and an investing activity on the statement of cash flows.
C. an operating item on the income statement and a financing activity on the statement of cash flows.
D. a financing activity on the statement of cash flows and an operating item on the income statement.
26.Cash receipts from interest on a note receivable would be classified on the statement of cash flows in the:
A. financing activity section.
B. investing activity section.
C. operating activity section.
D. non-cash financing and investing section.
27.A cash purchase of land would appear in which of the following sections of the statement of cash flows?
A. Cash outflow from financing activities.
B. Cash inflow and cash outflow in a separate schedule of noncash investing and financing activities.
C. Cash inflow from operating activities.
D. Cash outflow from investing activities.
28.Kramer Co. sold land that had cost $18,000 for $20,000 cash.
A. The $2,000 gain would be subtracted from net income in the operating activities section using the indirect method.
B. $18,000 would appear as a cash inflow from investing activities.
C. $20,000 would appear as a cash inflow from investing activities.
D. A and C.
The Jarvis Company issued a $40,000 face value interest bearing note with a stated interest rate of 9%, and a one-year term. The note was issued to the National Bank on August 1, 2013.
29.The amount of cash inflow from financing activities on the 12/31/2013 statement of cash flows would be:
A. $40,000.
B. $0.
C. $41,500.
D. $43,600.
30.The amount of interest expense and cash outflow shown on the 12/31/2013 financial statements would be:
A. Option A
B. Option B
C. Option C
D. Option D
31.The amount of interest expense and total cash outflows related to the note shown on the 12/31/2014 financial statements would be:
A. Option A
B. Option B
C. Option C
D. Option D
During 2013 the Sun Valley Company had the following transactions.1) The Accumulated Depreciation account had a beginning balance of $50,000 and an ending balance of $70,000. The increase was due to depreciation expense.2) The Long-Term Notes Payable account had a beginning balance of $80,000 and an ending balance of $30,000. The decrease was due to repayment of debt.3) The Accounts Receivable account had a beginning balance of $120,000 and an ending balance of $100,000. The difference was due to collection of revenue.4) The Equipment Account had a beginning balance of $50,000 and an ending balance of $185,000. The increase was due to the purchase of other operational assets.5) The Long Term Investments Account (Marketable Securities) had a beginning balance of $36,000 and an ending balance of $25,000. The decrease was due to the sale of investments at cost.6) The Dividends Payable account had a beginning balance of $24,000 and an ending balance of $20,000. There were $40,000 of dividends declared during the period.7) The Interest Payable account had a beginning balance of $4,500 and an ending balance of $2,500. The difference was due to the payment of interest.
32.What is the net cash flow from financing activities?
A. $44,000 inflow
B. $50,000 inflow
C. $50,000 outflow
D. $94,000 outflow
33.What is the net cash flow from investing activities?
A. $124,000 outflow
B. $124,000 inflow
C. $144,000 inflow
D. $144,000 outflow
34.What effect does the following journal entry have on the amount of cash generated by operating activities?
A. Increases it
B. Cannot be determined from the information given
C. Has no effect
D. Decreases it
