Question : 46. The net cash provided by operating activities affected by A. a change : 1197722

 

 

46. The net cash provided by operating activities is affected by 
A. a change in merchandise inventory.
B. a purchase of land for cash.
C. the issue of bonds payable for cash.
D. proceeds of cash investments by stockholders.

 

47. When the net cash provided by operating activities is determined, a gain on a sale of equipment should 
A. be added to the net income.
B. be subtracted from the net income.
C. not be used in the calculation.
D. be reported in the cash flows from financing activities section.

 

48. On a statement of cash flows, depreciation expense is 
A. subtracted from net income in the computation of the net cash provided by operating activities.
B. added to net income in the computation of the net cash provided by operating activities.
C. treated as a cash outflow in the computation of the net cash used in investing activities.
D. treated as a cash inflow in the computation of the net cash used in investing activities.

 

49. An increase in accounts payable is 
A. added to the net income when determining the net cash provided by operating activities.
B. subtracted from the net income when determining the net cash provided by operating activities.
C. added to the cash flows from investing activities.
D. not used to calculate the net cash provided by operating activities.

 

50. On a statement of cash flows, an increase in a prepaid expense 
A. is included in computing cash flows from operating activities.
B. is included in computing cash flows from investing activities.
C. is included in computing cash flows from financing activities.
D. is not used in computing cash flows.

 

51. When the net cash provided by operating activities is determined, an increase in income taxes payable should 
A. be subtracted from the net cash amount after other calculations have been made.
B. be subtracted from the net income.
C. not be used in the calculation.
D. be added to the net income.

 

52. When the net cash provided by operating activities is determined, the amortization of bond premium 
A. should be added to the net income.
B. should be subtracted from the net income.
C. should not be used in the calculation.
D. should be subtracted from the net cash amount after other calculations have been made.

 

 The Natural Company’s cash balance at December 31, 2015, was $150,000. The following information was reported on the company statement of cash flows for 2013:

  

 

53. The Natural Company’s Statement of Cash Flows would report Cash Flows from Operating Activities totaling: 
A. $252,000.
B. $286,000.
C. $368,000.
D. $470,000.

 

54. Doff Manufacturing Co. sold equipment that cost $12,000 for $3,000. Depreciation of $10,000 had been taken on the equipment. How is the Cash Flows from Operating Activities affected? 
A. The loss of $1,000 is added to Net Income
B. The gain of $1,000 is added to Net Income
C. The gain of $1,000 is deducted from Net Income
D. The loss of $1,000 is deducted from Net Income

 

55. Cannon Manufacturing Co. sold equipment that cost $18,000 for $6,000. A loss on sale of $1,000 was recorded. How is the Cash Flows from Operating Activities affected? 
A. The loss of $1,000 is added to Net Income.
B. The loss of $6,000 is added to Net Income.
C. The gain of $6,000 is deducted from Net Income.
D. The loss of $1,000 is deducted from Net Income.

 

 

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