Question : Multiple Choice Questions In order to prepare the statement of cash : 1229437

Multiple Choice Questions
 

In order to prepare the statement of cash flows for Rag Dolls Corporation for 2010, the accountant has compiled the following data regarding cash flows:
 

165. Rag Dolls’ cash flow from investing activities during 2010 is: 
A. $390,000 net cash used by investing activities.
B. $322,500 net cash provided by investing activities.
C. $352,500 net cash used by investing activities.
D. $360,000 net cash used by investing activities.

166. Rag Dolls’ cash flow from financing activities during 2010 is: 
A. $322,500 net cash provided by financing activities.
B $172,500 net cash provided by financing activities.
C. $127,500 net cash provided by financing activities.
D. $375,000 net cash provided by financing activities.

167. Rag Dolls’ cash flow from operating activities during 2010 is: 
A. $45,000 net cash provided by operating activities.
B. $1,155,000 net cash used by operating activities.
C. $240,000 net cash provided by operating activities.
D. $195,000 net cash provided by operating activities.

168. In the 2010 statement of cash flows for Rag Dolls Corporation, the amount of cash received from customers is: 
A. $1,310,000.
B. $1,103,000.
C. $1,233,000.
D. $1,293,000.

Lester Corporation’s statement of cash flows for 2009 shows the following investing activities:
 

169. The cost of the land sold during 2009 was: 
A. $65,000.
B. $125,000.
C. $190,000.
D. $60,000.

170. The cost (book value) of the marketable securities sold during 2009 was: 
A. $207,000.
B. $113,000.
C. $160,000.
D. Some other amount.

171. Lester’s balance sheet at the end of 2008 showed Land of $100,000. On the basis of the data presented above, compute the amount to be reported for Land in Lester Corporation’s balance sheet at December 31, 2009. 
A. $250,000.
B. $350,000.
C. $290,000.
D. Some other amount.

172. Lester’s balance sheet at the end of 2008 showed Investment in Marketable Securities at $250,000. On the basis of the data presented above, compute the amount to be reported for Investment in Marketable Securities in Lester Corporation’s balance sheet at December 31, 2009. 
A. $43,000.
B. $110,000.
C. $137,000.
D. $253,000.

173. Which of the following correctly describes a difference between the direct method and the indirect method of computing operating cash flow? 
A. The direct method is used when accounting records are kept on a cash basis; the indirect method is used when accounting records are maintained on an accrual basis.
B. The direct method may be used only when a company maintains special journals for cash receipts and cash disbursements; the indirect method is used in all other situations.
 Both the direct and the indirect methods result in the same net cash flow from operating activities, but the format of this section of the statement of cash flows is different under the alternative methods.
D. The direct method is used when all accounting records and bank statements are available; the indirect method is used when some accounting records or documents are missing or have been destroyed.