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Cash from operating activities will be the same using either the direct or indirect method to prepare the Statement of Cash Flows.

A) True
B) False

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Use the following information to answer questions 72-73. Kingsway Co. had the following activity during 2015: Use the following information to answer questions 72-73. Kingsway Co. had the following activity during 2015: -What was the cash flow from financing activities? A) $300,000 B) $292,000 C) $325,000 D) $275,000 -What was the cash flow from financing activities?


A) $300,000
B) $292,000
C) $325,000
D) $275,000

E) A) and B)
F) C) and D)

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Which of the following would be an example of an investing activity on the Statement of Cash Flows?


A) purchase of capital assets
B) sale of preferred shares
C) repurchase of shares issued
D) dividends paid to shareholders

E) None of the above
F) B) and D)

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If a company has used a line of credit, then the amount of the borrowing can be considered "positive cash".

A) True
B) False

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All companies must present operating activities first on the statement of cash flows.

A) True
B) False

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Inadequate financing is the major reason new business start-ups experience cash shortages.

A) True
B) False

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If a company had growing sales, which of the following would normally be expected on the Statement of Cash Flows?


A) an increase in both accounts receivable and accounts payable
B) a decrease in both accounts receivable and accounts payable
C) a decrease in accounts receivable and an increase in accounts payable
D) an increase in accounts receivable and a decrease in accounts payable

E) B) and D)
F) A) and C)

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Cash position takes into consideration cash and cash equivalents.

A) True
B) False

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Use the following chart for questions 84-88. Use the following chart for questions 84-88. -Based on the chart above which company profile will be fit the cash flow pattern for scenario 5? A) Successful, but actively relocating using financing from operations with cash from creditors and shareholders. B) Struggling, but using cash inflows from the sale of capital assets and new borrowings to remain in operation. C) A start-up or struggling company that is able to attract new financing for growth or reorganization. D) Struggling, but using existing cash balances to cover losses, purchase capital assets and repay creditors. -Based on the chart above which company profile will be fit the cash flow pattern for scenario 5?


A) Successful, but actively relocating using financing from operations with cash from creditors and shareholders.
B) Struggling, but using cash inflows from the sale of capital assets and new borrowings to remain in operation.
C) A start-up or struggling company that is able to attract new financing for growth or reorganization.
D) Struggling, but using existing cash balances to cover losses, purchase capital assets and repay creditors.

E) B) and C)
F) A) and D)

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The cash-to-cash cycle is the time between when a company pays out cash to purchase goods until those goods are ultimately paid for by the supplier.

A) True
B) False

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Folio Co. had the following activity during 2015: Folio Co. had the following activity during 2015: What was the cash flow from investing activities? A) $157,000 B) $140,000 C) $164,000 D) $147,000 What was the cash flow from investing activities?


A) $157,000
B) $140,000
C) $164,000
D) $147,000

E) All of the above
F) None of the above

Correct Answer

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Patricio Co. reported $10,000 cash used in the operating activities section of the Statement of Cash Flows and the following data: depreciation expense $10,000; an accounts payable increase of $12,000; a $3,000 decrease in accounts receivable; an increase in wages payable of $8,000; and a $15,000 gain on the sale of long-term investments. Patricio Co.'s net income/loss for the period was


A) $8,000 income.
B) $28,000 loss.
C) $38,000 loss.
D) $2,000 income.

E) A) and B)
F) A) and D)

Correct Answer

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In the early part of the cash-to-cash cycle, net cash flows are normally inflows.

A) True
B) False

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Capitalization refers to the long term assets on the Statement of Financial Position.

A) True
B) False

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On the Statement of Cash Flows, which of the following would equal cash paid for income taxes?


A) income taxes payable plus change in cash
B) income taxes expense plus ending balance in income taxes payable
C) income taxes expense plus beginning balance in income taxes payable
D) income taxes expense plus change in income taxes payable

E) B) and C)
F) B) and D)

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Cash from operations is negatively impacted by all of the following, EXCEPT


A) increasing inventory.
B) increasing accounts receivable.
C) decreasing accounts payable.
D) increasing accounts payable.

E) B) and D)
F) B) and C)

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Use the following information to answer questions 72-73. Kingsway Co. had the following activity during 2015: Use the following information to answer questions 72-73. Kingsway Co. had the following activity during 2015: -What was the cash flow from investing activities? A) $ 57,000 B) $ 75,000 C) $ 93,000 D) $ - 0 - -What was the cash flow from investing activities?


A) $ 57,000
B) $ 75,000
C) $ 93,000
D) $ - 0 -

E) None of the above
F) All of the above

Correct Answer

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Babin Co. reported the following for 2015: Babin Co. reported the following for 2015: Using the indirect method, the net cash flow from operating activities was A) $365,000. B) $300,000. C) $235,000. D) $240,000. Using the indirect method, the net cash flow from operating activities was


A) $365,000.
B) $300,000.
C) $235,000.
D) $240,000.

E) A) and C)
F) None of the above

Correct Answer

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Staffen Co. reported a cash position of $35,000 and as of December 31, after its first year of operations. Staffen also reported the following: Staffen Co. reported a cash position of $35,000 and as of December 31, after its first year of operations. Staffen also reported the following: How much cash was provided through Staffen's financing activities? A) $100,000 B) $ 93,000 C) $ 90,000 D) $ 0 How much cash was provided through Staffen's financing activities?


A) $100,000
B) $ 93,000
C) $ 90,000
D) $ 0

E) A) and B)
F) None of the above

Correct Answer

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The Statement of ___ is for shareholders to assess company profitability.


A) Cash Flows
B) Shareholders' Equity
C) Financial Position
D) Income

E) B) and D)
F) B) and C)

Correct Answer

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Showing 61 - 80 of 93

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