Question :
91. Of the following, which one affects cash during a period?
A. The : 1225357
91. Of the following, which one affects cash during a period?
A. The declaration of a stock dividend.
B. Writing off an uncollectible account receivable.
C. The declaration of a cash dividend.
D. An adjusting entry recognizing the expiration of prepaid insurance.
E. The payment of interest expense accrued in a previous accounting period.
92. When using the indirect method to calculate and report the net cash provided or used by operating activities, net income is adjusted for:
A. Gains and losses from nonoperating items.
B. Revenues and expenses that did not provide or use cash.
C. Changes in noncash current assets and current liabilities related to operating activities.
D. Changes in current liabilities related to operating activities.
E. All of these.
93. When using the indirect method to calculate and report net cash provided or used by operating activities, which of the following is subtracted from net income?
A. Decrease in income taxes payable.
B. Depreciation expense.
C. Amortization of intangible assets.
D. Bad debts expense.
E. Decrease in merchandise inventory.
94. The first line item in the operating activities section of a spreadsheet for a statement of cash flows prepared using the indirect method is:
A. Cash.
B. Cash received from customers.
C. Increase (decrease) in accounts receivable.
D. Net income.
E. Adjustments to net income.
95. When preparing a statement of cash flows on the indirect method, each of the following should be classified as an operating activity cash flow except:
A. An increase in accounts receivable.
B. A decrease in accounts payable.
C. A gain from disposal of a long-term asset
D. An increase in prepaid expenses.
E. A decrease in accrued expenses payable.
96. A company’s Inventory balance at 12/31/11 was $188,000 and $200,000 at 12/31/10. Its Accounts Payable balance at 12/31/11 was $84,000 and $80,000 at 12/31/10, and its cost of goods sold for 2011 was $720,000. The company’s total amount of cash payments for merchandise in 2011 equals:
A. $704,000.
B. $712,000.
C. $720,000.
D. $728,000.
E. $736,000.
97. Use the following information to calculate cash paid for wages and salaries:
A. $157,400.
B. $163,800.
C. $168,000.
D. $172,200.
E. $174,400.
98. Use the following information about the current year’s operations of a company to calculate the cash paid for merchandise.
A. $218,000.
B. $223,200.
C. $220,000.
D. $228,800.
E. $234,000.
99. When preparing a statement of cash flows on the indirect method, which of the following is correct?
A. Proceeds from the sale of equipment should be added to net income in the operating activities section.
B. A loss on the sale of land should be added to net income in the operating activities section.
C. The declaration of a cash dividend should be a use of cash in the financing activities section.
D. The issuance of a stock dividend should be a use of cash in the financing activities section.
E. The purchase of land and a building by issuing a long-term note payable should be a source of cash in the financing activities section.
100. A company’s income statement showed the following: net income, $124,000; depreciation expense, $30,000; and gain on sale of plant assets, $14,000. An examination of the company’s current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $9,400; merchandise inventory increased $18,000; prepaid expenses decreased $6,200; accounts payable increased $3,400. Calculate the net cash provided or used by operating activities.
A. $139,000.
B. $141,000.
C. $145,800.
D. $155,000.
E. $167,000.
