Question :
91.Which of the following considered to be a cash flow : 1302923
91.Which of the following is considered to be a cash flow provided/(used) by financing activities?
A.Dividends received from stock investments
B.Cash received from customers for amounts due on account
C.Proceeds from issuing common stock
D.Interest paid on short-term notes payable
92.To which of the following is the operating activities section of the statement of cash flows prepared using the direct method most similar?
A.The balance sheet
B.An income statement converted to the accrual basis of accounting
C.An income statement converted to the cash basis of accounting
D.A bank reconciliation
93.Which method of preparing the statement of cash flows is similar to an income statement prepared on a cash basis?
A.Single-step method
B.Indirect method
C.Multiple-step method
D.Direct method
94.Which of the following is the correct equation to use when calculating cash payments for income taxes under the direct method?
A.Net income – Decrease in income taxes payable or + Increase in income taxes payable
B.Net income + Decrease in income taxes payable or – Increase in income taxes payable
C.Income tax expense – Decrease in income taxes payable or + Increase in income taxes payable
D.Income tax expense – Decrease in accounts receivable or + Increase in accounts receivable
95.Which of the following is not added to net income in the operating activities section of the statement of cash flows prepared using the indirect method?
A.Depreciation expense
B.Amortization expense
C.Gain on sale of equipment
D.Loss on sale of equipment
96.Which of the following describes the nature of the operating activities section of the statement of cash flows prepared using the indirect method?
A.A reconciliation of cash flows provided/(used) by operating activities and net income
B.An accrual basis format of the income statement
C.A cash basis format of the income statement
D.A reconciliation of the net increase or decrease in cash and cash equivalents
97.Which statement below is correct concerning the majority of companies’ preferences in preparing the statement of cash flows?
A.Most companies use the direct method.
B.Most companies use the indirect method.
C.About half of public companies use the direct method and the other half use the indirect method.
D.Most companies use both the direct and indirect methods.
98.Wally Foods reported cost of goods sold for $100,000 and depreciation expense totaling $7,000. On January 1, Wally Foods had inventory and accounts payable of $21,000 and $24,000, respectively. On December 31, inventory and accounts payable were $28,000 and $20,000, respectively. Net income is $60,000. Beginning accounts receivable was $13,000 and ending was $12,000. How much is reported as net cash provided/(used) by operating activities?
A.$57,000
B.$65,000
C.$77,000
D.$50,000
99.Which statement is true with respect to the preparation of the ‘cash flows from operating activities’ section of the statement of cash flows?
A.It is based on accrual income.
B.Operating cash flows are the difference between revenues and expenses.
C.It can be prepared using the direct or indirect methods.
D.Cash payments for depreciation are reported in the operating activities section.
100.The accounting records of Fine Mart Clothing include the following information for the year:
Collections of accounts receivable $124,000
Payments to suppliers 76,000
Accrual of payables at month end 17,000
Credit sales 115,000
Cash sales 35,000
Depreciation expense 12,000
Payment for operating expenses 43,000
What amount of net cash provided by operating activities will Fine Mart Clothing report on its statement of cash flows for the year?
A.$19,000
B.$31,000
C.$40,000
D.$28,000
