Question : 111. What the key difference between the direct method and indirect : 1245936

111. What is the key difference between the direct method and indirect method for preparing the Statement of Cash Flows? 
A. presentation of Cash from Operations
B. presentation of  Cash from Investing
C. presentation of  Cash from Financing
D. presentation of  Cash from Investing and Cash from Financing
E. presentation of Cash from Operations, Cash from Investing and Cash from Financing

112. The _____ for preparing the Statement of Cash Flows begins with net income and adjusts that amount for noncash items.  
A. indirect method
B. direct method
C. income method
D. bottom-up method
E. top-down method

113. Many analysts focus attention on cash flow from operations, thinking it as important as, or more important than, net income. A common misconception is that the management has little opportunity to manipulate transactions affecting the statement of cash flows. The manipulation possibilities arise from  
A. the amounts of cash flows.
B. the timing of cash flows.
C. the classification and disclosure in the statement and related notes.
D. both choices b and c.
E. none of the above.

114. Firms have some choice as to when they disburse cash. Firms that delay making payments to suppliers, employees, and others during the last several days of an accounting period 
A. conserve cash and increase cash flow from operations for that period.
B. conserve cash and decrease cash flow from operations for that period.
C. do not conserve cash and increase cash flow from operations for that period.
D. do not conserve cash and decrease cash flow from operations for that period.
E. do not effect the cash balance and has no affect on cash flow from operations for that period.

115. Firms have some choice as to when they disburse cash. A firm may delay making payments to suppliers, employees, and others during the last several days of an accounting period. When this firm makes the cash payments during the early part of the next period, cash flow from 
A. operations decreases.
B. operations increases.
C. financing decreases.
D. financing increases.
E. investing decreases.

116. Firms have some choice as to when they disburse cash. A firm may delay making payments to suppliers, employees, and others during the last several days of an accounting period and then make the cash payments during the early part of the next period. The firm 
A. decreases cash flow from financing during the first period but increases cash flow from financing during the second period.
B. increases cash flow from operations during the first period but decreases cash flow from operations during the second period.
C. decreases cash flow from operations during the first period but increases cash flow from operations during the second period.
D. increases cash flow from financing during the first period but decreases cash flow from financing during the second period.
E. increases cash flow from investing during the first period but decreases cash flow from investing during the second period.

117. Regarding the Statement of Cash Flow, which of the following is not true regarding operations? 
A. A financially healthy company generates sustained cash inflows from selling goods and providing services
B. Assessed over several years, the cash flow from operations indicates the extent to which operating activities generate more cash than they use
C. A firm can use the excess cash flow from operations to acquire buildings and equipment, pay dividends, retire long-term debt
D. A firm cannot use the excess cash flow from operations for investing and financing activities 
E. All of the above are not true.

118. Firms not experiencing rapid growth can often finance capital expenditures with  
A. cash flow from operations.
B. borrowed funds.
C. issue common shares.
D. sales of existing noncurrent assets.
E. none of the above.

119. Rapidly growing firms must often _____ to finance their acquisitions of noncurrent assets.  
A. sell existing noncurrent assets
B. borrow funds
C. issue common shares
D. choices b and c
E. choices a, b and c

120. Firms can use free cash flow to  
A. repay borrowing.
B. pay a dividend.
C. repurchase common shares.
D. add to cash on the balance sheet.
E. all of the above.