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Course 171045- Statement Of Cash Flows: Reporting And Analysis
  Final Exam
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171045v - Statement Of Cash Flows: Reporting And Analysis

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6 CPE Credit Hours

Final Exam
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Read 'Chapter 0: Course Material' & answer the following question(s):
1. A statement of cash flows is to be presented in general-purpose external financial statements by which of the following?
2. It is an objective of the statement of cash flows to
3. Bay Manufacturing Co. purchased a 3-month U.S. Treasury bill. In preparing Bay's statement of cash flows, this purchase would
4. Which of the following cash flows per share should be reported in a statement of cash flows?
5. Which of the following is a primary use of cash?
6. A reconciliation of net income to cash flow from operations is required
7. The only difference between the direct method and the indirect method is the presentation in the ___________________ activities section of the statement of cash flows.
8. Donnegan Company reported operating expenses of $285,000 for 2X12. The following data were extracted from the company’s financial records: On 12/31/2X11, Prepaid Expenses = $60,000 and Accrued Expenses = $210,000; on 12/31/2X12, Prepaid Expenses = $69,000 and Accrued Expenses = $255,000. On a statement of cash flows for 2X12, using the direct method, cash payments for operating expenses should be:
9. An increase in accounts receivable would be reported in a statement of cash flows using the indirect method (reconciliation method) as a(n)
10. The amortization of bond premium on long-term debt should be presented in a statement of cash flows (using the indirect method for operating activities) as a(n)
11. Crabbe Company reported $80,000 of selling and administrative expenses on its income statement for the past year. The company had depreciation expense and an increase in prepaid expenses associated with the selling and administrative expenses for the year. Assuming use of the direct method, how would these items be handled in converting the accrual based selling and administrative expenses to the cash basis?
12. Xanthe Corporation had the following transactions occur in the current year: 1. Cash sale of merchandise inventory; 2. Sale of delivery truck at book value; 3. Sale of Xanthe common stock for cash; 4. Issuance of a note payable to a bank for cash; 5. Sale of a security held as an available-for-sale investment; 6. Collection of loan receivable. How many of the above items will appear as a cash inflow from investing activities on a statement of cash flows for the current year?
13. A company borrows $10,000 and signs a 90-day nontrade note payable. In preparing a statement of cash flows (indirect method), this event would be reflected as a(n)
14. A statement of cash flows typically would not disclose the effects of
15. Declaration of a cash dividend on common stock affects cash flows from operating activities under the direct and indirect methods as follows:
16. Which of the following would be classified as a financing activity on a statement of cash flows?
17. Which of the following information should be disclosed as supplemental information in the statement of cash flows?
18. How should significant noncash transactions be reported in the statement of cash flows according to GAAP?
19. The first step in the preparation of the statement of cash flows requires the use of information included in which comparative financial statements?
20. If common stock was issued to acquire an $8,000 machine, how would the transaction appear on the statement of cash flows?
21. Lohmeyer Corporation reports: Cash provided by operating activities = $250,000; Cash used by investing activities = $110,000; Cash provided by financing activities = $140,000; Beginning cash balance = $70,000. What is Lohmeyer’s ending cash balance?
22. During 2X12 the DLD Company had a net income of $50,000. In addition, selected accounts showed the following changes: Accounts Receivable = $3,000 increase; Accounts Payable = $1,000 increase; Building = $4,000 decrease; Depreciation Expense = $1,500 increase; Bonds Payable = $8,000 increase. What was the amount of cash provided by operating activities?
23. Harding Corporation reports the following information: Net income = $500,000; Depreciation expense = $140,000; Increase in accounts receivable = $60,000. Harding should report cash provided by operating activities of
24. The following information on selected cash transactions for 2X12 has been provided by Mancuso Company: Proceeds from sale of land = $160,000; Proceeds from long-term borrowings = $400,000; Purchases of plant assets = $144,000; Purchases of inventories = $680,000; Proceeds from sale of Mancuso common stock = $240,000. What is the cash provided (used) by investing activities for the year ended December 31, 2X12, as a result of the above information?
25. Selected information from Dinkel Company's 2X12 accounting records is as follows: Proceeds from issuance of common stock = $400,000; Proceeds from issuance of bonds = $1,200,000; Cash dividends on common stock paid = $160,000; Cash dividends on preferred stock paid = $60,000; Purchases of treasury stock = $120,000; Sale of stock to officers and employees not included above = $100,000. Dinkel's statement of cash flows for the year ended December 31, 2X12, would show net cash provided (used) by financing activities of
26. Hager Company sold some of its plant assets during 2011. The original cost of the plant assets was $750,000 and the accumulated depreciation at date of sale was $700,000. The proceeds from the sale of the plant assets were $105,000. The information concerning the sale of the plant assets should be shown on Hager's statement of cash flows (indirect method) for the year ended December 31, 2011, as a(n)
27. Net cash flow from operating activities for 2011 for Spencer Corporation was $300,000. The following items are reported on the financial statements for 2011: Cash dividends paid on common stock = $20,000; Depreciation and amortization = $12,000; Increase in accounts receivables = $24,000. Based on the information above, Spencer’s net income for 2011 was:
28. Packard Corporation reports the following information: Net cash provided by operating activities = $215,000; Average current liabilities = $150,000; Average long-term liabilities = $100,000; Dividends paid = $60,000; Capital expenditures = $110,000; Payments of debt = $35,000. Packard’s free cash flow is:
29. Net Cash Provided by Operating Activities/Average Total Liabilities is
30. Ocean Company follows IFRS for its external financial reporting. Which of the following methods of reporting are acceptable under IFRS for the items shown?
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