Question :
81. Non-cash financing and investing activities A. must be reported in the notes : 1228457
81. Non-cash financing and investing activities
A. must be reported in the notes to the financial statements.
B. are not separately disclosed within the financial statements.
C. are disclosed in a separate schedule as a supplement to the statement of cash flows.
D. are reported as cash flows because of their significance.
82. A company acquired some land (independently appraised at $12,000) and paid for it by issuing 1,000 shares of its common stock (par $10 per share; no market price was quoted). How should this be reported on the statement of cash flows?
A. Report $12,000 as inflow and outflow of cash.
B. Report $12,000 as an inflow of cash.
C. Should not be reported on the statement of cash flows.
D. Report in the schedule of significant noncash transactions.
83. Slipper Company sold a productive asset, a machine, for cash. It originally cost $20,000. The accumulated depreciation at the date of disposal was $15,000. A gain on the disposal of $2,000 was reported. What was the asset’s selling price?
A. $7,000
B. $3,000
C. $4,000
D. $5,000
84. Halbur Company reported the following for its recent year of operation:
No new equipment was purchased during the year. What was the selling price of the equipment?
A. $3,900
B. $1,000
C. $900
D. $600
85. A Company reported net income of $200,000 during 2010. The company reported depreciation expense of $35,000, patent amortization of $10,000 and a $5,000 loss on the sale of equipment. Based on the information provided, how much is the company’s cash flow from operating activities?
A. $245,000
B. $250,000
C. $240,000
D. $235,000
86. Which of the following statements does not correctly describe an adjustment to net income when determining cash flows from operating activities when using the indirect method?
A. An increase in accounts receivable will be deducted from net income.
B. A loss on the sale of a depreciable asset will be added to net income.
C. An increase in accrued liabilities will be deducted from net income.
D. An increase in accounts payable will be added to net income.
87. The following information has been provided to you by RKJ Company:
Net income $300,000
Decrease in accounts payable $114,000
Increase in inventory $22,000
Increase in accounts receivable $24,000
Decrease in bonds payable $25,000
Loss on sale of a depreciable asset $19,000
Depreciation expense $40,000
Decrease in income taxes payable $12,000
What is the net cash flow from operating activities?
A. $231,000
B. $187,000
C. $206,000
D. $168,000
88. Which of the following transactions would be reported within the investing section of the cash flow statement?
A. The cash sale of land at a loss.
B. The purchase of a building in exchange for common stock.
C. The receipt of a stock dividend from a stock investment.
D. The cash receipt of a dividend from a stock investment.
89. Which of the following transactions would not be reported within the investing section of the cash flow statement?
A. The cash sale of land at a gain.
B. The purchase of a building for cash.
C. The purchase of a stock investment for cash.
D. The cash receipt of a dividend from a stock investment.
90. Which of the following statements does not correctly describe an adjustment to net income when determining cash flows from operating activities when using the indirect method?
A. An increase in wages payable will be added to net income.
B. A gain on the sale of a depreciable asset will be deducted from net income.
C. An increase in prepaid expenses will be deducted from net income.
D. An increase in income taxes payable will be deducted from net income.
