Question :
86.A company had net cash flows from operations of $341,000, : 1236502
86.A company had net cash flows from operations of $341,000, net income of $286,000 and average total assets of $1,850,000. The cash flow on total assets ratio equals:
A.83.9%
B.542.5%
C.15.5%
D.18.4%
E.646.9%
87.A company had net cash flows from operations of $120,000, cash flows from financing of $330,000, total cash flows of $500,000, and average total assets of $2,500,000. The cash flow on total assets ratio equals:
A.4.8%.
B.5.0%.
C.20.0%.
D.20.8%.
E.24.0%.
88.A company had average total assets of $1,660,000, total cash flows of $1,320,000, cash flows from operations of $205,000, and cash flows from financing of $750,000. The cash flow on total assets ratio equals:
A.45.2%.
B.22.0%.
C.11.65%.
D.12.3%.
E.79.5%.
89.Preparation of the statement of cash flows does not involve:
A.Computing the net increase or decrease in cash.
B.Computing and reporting net cash provided or used by operations.
C.Computing the profit compared to the net increase or decrease in cash.
D.Computing and reporting net cash provided or used by financing activities.
E.Computing and reporting net cash provided or used by investing activities.
90.The reporting of net cash provided or used by operating activities that lists the major items of operating cash receipts, such as receipts from customers, and subtracts the major items of operating cash disbursements, such as cash paid for merchandise, is referred to as the:
A.Direct method of reporting net cash provided or used by operating activities.
B.Cash basis of accounting.
C.Classified statement of cash flows.
D.Indirect method of reporting net cash provided or used by operating activities.
E.Net method of reporting cash flows from operating activities.
91.A statement of cash flows explains the differences between the beginning and ending balances of:
A.Net income.
B.Equity.
C.Cash and cash equivalents.
D.Working capital.
E.Cash, cash equivalents, and short-term investments.
92.The direct method for the preparation of the operating activities section of the statement of cash flows:
A.Separately lists each major item of operating cash receipts and cash payments.
B.Reports adjustments to reconcile net income to net cash provided or used by operating activities in the statement.
C.Reports a different amount of cash flows from operations than if the indirect method is used.
D.Is required if the company is a merchandiser.
E.Is required by the FASB.
93.The indirect method for the preparation of the operating activities section of the statement of cash flows:
A.Separately lists each major item of operating cash receipts.
B.Separately lists each major item of operating cash payments.
C.Reports net income and then adjusts it for items necessary to determine net cash provided or used by operating activities.
D.Is required if the company is a merchandiser.
E.Must not be used in all circumstances.
94.The direct method of reporting operating cash flows:
A.Is recommended but not required by the FASB.
B.Must be used by all companies.
C.Is used by most companies.
D.Is considered supplementary disclosure.
E.Is not recommended by the FASB, but is commonly used.
95.Of the following, which one affects cash during a period?
A.The payment of interest expense accrued in a previous accounting period.
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 declaration of a stock dividend.
