Question : 101. Which of the following transactions or events should be reported : 1256413

 

 

101. Which of the following transactions or events should be reported as a source of cash from operating activities when using the direct method? A. Credit sales.B. Cash collections from customers.C. Depreciation expense.D. Cash received from the sale of a building.E. Cash received from the sale of treasury stock.

 

 

102. When analyzing the changes on a spreadsheet used to prepare a statement of cash flows, the cash flows from operating activities generally affect: A. Net income, current assets, and current liabilities.B. Noncurrent assets.C. Noncurrent liability and the equity accounts.D. Both noncurrent assets and noncurrent liabilities.E. Equity accounts only.

 

 

103. When analyzing the changes on a spreadsheet used to prepare a statement of cash flows, the cash flows from investing activities generally affect: A. Net income, current assets, and current liabilities.B. Noncurrent assets.C. Noncurrent liability and the equity accounts.D. Both noncurrent assets and noncurrent liabilities.E. Equity accounts only.

 

 

104. When analyzing the changes on a spreadsheet used to prepare a statement of cash flows, the cash flows from financing activities generally affect:A. Net income, current assets, and current liabilities.B. Noncurrent assets.C. Noncurrent liabilities and equity accounts.D. Both noncurrent assets and noncurrent liabilities.E. Equity accounts only.

 

 

105. When the operating activities section of the statement of cash flows is reported using the direct method, the FASB requires: A. A reconciliation to the statement of cash flows under the indirect method. B. A reconciliation of net income to net cash provided or used by operating activities.C. Footnotes to the financial statements disclosing the difference between net income and the cash provided or used by financing activities.D. The income statement to be prepared under the cash basis of accounting.E. Noncash investing and financing activities must be included in the statement of cash flows.

 

 

106. A company had cost of goods sold of $150,000 during a given period. Compute cash paid for merchandise during this period given the following data: 

 

Beginning Balance

Ending Balance

Accounts payable

$20,000

$17,500

Merchandise inventory

35,000

42,000

A. $145,500B. $159,500C. $140,500D. $154,500E. $157,000

 

 

107. A company had wage expense of $750,000 during a given period. Compute cash paid for wages during this period given the following data: 

 

Beginning Balance

Ending Balance

Wages Payable

$100,000

$25,500

A. $750,000B. $675,500C. $824,500D. $74,500E. $125,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

108. Net income of Lucky Company was $52,000. The accounting records reveal depreciation expense of $99,000 as well as increases in prepaid rent, salaries payable, and income taxes payable of $74,000, $15,700, and $14,000, respectively. What is the net cash flow provided (used) by operating activities?A. $254,700B. $47,300C. $195,300D. $150,700E. $106,700

 

 

109. The accounting records of Miller Company provided the data below ($ in 000s).

 

 

 

Net income

$

17,500

Depreciation expense

 

8,400

Increase in accounts receivable

 

4,400

Decrease in inventory

 

6,400

Decrease in prepaid insurance

 

1,500

Decrease in salaries payable

 

2,700

Increase in interest payable

 

900

 

What is the net cash provided (used) by operating activities?

A. $20,600B. $27,600C. $3,800D. ($27,600)E. $41,800

 

 

110. A corporation prepares its statement of cash flows using the indirect method to report operating activities. Net income for the 2014 fiscal year was $634,000. Depreciation and amortization expense of $60,000 and $30,000 respectively were included with operating expenses in the income statement. The following information describes the changes in current assets and liabilities other than cash:

 

 

 

 

Decrease in accounts receivable

$

22,000

Increase in inventories

 

9,400

Increase prepaid expenses

 

8,900

Increase in salaries payable

 

10,400

Decrease in income taxes payable

 

14,400

Determine the net cash flow provided (used) by operating activities.

A. ($692,500)B. $692,500C. $723,700D. ($536,300)E. ($723,700)