Question : 147.Financing activities involve a.lending money to other entities and collecting those : 1311969

 

 

147.Financing activities involve

a.lending money to other entities and collecting on those loans.

b.cash receipts from sales of goods and services.

c.acquiring and disposing of productive long-lived assets.

d.long-term liability and owners’ equity items.

 

 

148.              The information to prepare the statement of cash flows usually comes from each of the following except

a.the comparative balance sheet.

b.the retained earnings statement.

c.additional information.

d.the current income statement.

 

 

149.              The statement of cash flows is prepared from all of the following except

a.the adjusted trial balance.

b.comparative balance sheets.

c.selected transaction data.

d.the current income statement.

 

 

150.              The information in a statement of cash flows will not help investors to assess the entity’s ability to

a.generate future cash flows.

b.obtain favorable borrowing terms at a bank.

c.pay dividends.

d.pay its obligations when they become due.

 

 

151.              In converting net income to net cash provided by operating activities, under the indirect method:

a.decreases in accounts receivable and increases in prepaid expenses are added.

b.decreases in inventory and increases in accrued liabilities are added.

c.decreases in  accounts payable and decreases in inventory are deducted.

d.increases in accounts receivable and increases in accrued liabilities are deducted.

 

 

152.              In the Rogers Company, land decreased $75,000 because of a cash sale for $75,000, the equipment account increased $20,000 as a result of a cash purchase, and Bonds Payable increased $70,000 from an issuance for cash at face value. The net cash provided by investing activities is

a.$75,000.

b.$125,000.

c.$55,000.

d.$50,000.

 

 

153.Corgan Company uses the direct method in determining net cash provided by operating activities, During the year, operating expenses were $290,000, prepaid expenses increased $20,000, and accrued expenses payable increased $30,000. Cash payments for operating expenses were

a.$240,000.

b.$340,000.

c.$300,000.

d.$280,000.

 

 

154.Bath Company uses the direct method in determining net cash provided by operating activities. The income statement shows income tax expense $80,000. Income taxes payable were $35,000 at the beginning of the year and $25,000 at the end of the year. Cash payments for income taxes are

a.$50,000.

b.$80,000.

c.$90,000.

d.$140,000.

 

 

155.              When a worksheet is used, all but one of the following statements is correct. The incorrect statement is

a.Reconciling items on the worksheet are not journalized or posted.

b.The bottom portion of the worksheet shows the statement of cash flows effects.

c.The balance sheet accounts portion of the worksheet is divided into two parts:  assets, and liabilities and stockholders’ equity.

d.Each line pertaining to a balance sheet account should foot across.

 

 

 

 

 

 

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