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quiz cash flow

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Question 1;Analysis of the financing activities section of the statement of cash flows will disclose;the extent of investments in plant and equipment.;net income for the period.;purchases and sales of treasury stock.;the amount of money loaned to others.;0.2 points;Question 2;A positive free cash flow indicates that the company has met all its planned cash commitments and has cash available to reduce debt or to expand.;True;False;0.2 points;Question 3;Assume that the balance of accounts payable does not change during a period. When preparing a statement of cash flows, an increase in ending inventory over beginning inventory will result in an adjustment to net income under the indirect approach because;the amount of cost of goods sold is equal to the amount of cash paid for purchases.;consumed inventory is an expense but not a use of funds.;the amount of cost of goods sold on an accrual basis is less than the amount of cash paid for purchases of inventory.;the amount of cash paid for purchases of inventory is less than the amount of cost of goods sold on an accrual basis.;0.2 points;Question 4;Assume the indirect method is used to compute net cash flows from operating activities. For this item extracted from the financial statements?Decrease in Accounts Receivable?indicate the effect on net income in arriving at net cash flows from operating activities by choosing one of the following;Add to net income to arrive at net cash flows from operating activities.;Subtract from net income to arrive at net cash flows from operating activities.;Not used to adjust net income to calculate net cash flows from operating activities.;0.2 points;Question 5;Assume the indirect method is used to compute net cash flows from operating activities. For this item extracted from the financial statements?Dividend Income (assume that cash received is equal to amount reported)?indicate the effect on net income in arriving at net cash flows from operating activities by choosing one of the following;Add to net income to arrive at net cash flows from operating activities.;Subtract from net income to arrive at net cash flows from operating activities.;Not used to adjust net income to calculate net cash flows from operating activities.;0.2 points;Question 6;Assume the indirect method is used to compute net cash flows from operating activities. For this item extracted from the financial statements?Interest Income (assume that cash received is equal to amount reported)?indicate the effect on net income in arriving at net cash flows from operating activities by choosing one of the following;Add to net income to arrive at net cash flows from operating activities.;Subtract from net income to arrive at net cash flows from operating activities.;Not used to adjust net income to calculate net cash flows from operating activities.;0.2 points;Question 7;Cash equivalents do not include;U.S. Treasury bills.;money market accounts.;marketable securities.;commercial paper.;0.2 points;Question 8;Cash flows to assets is computed as;Net cash flows from operating activities/Average total assets;Average total assets/Net cash flows from operating activities;Net cash flows from operating activities/Sales;Net income/Net cash flows from operating activities;0.2 points;Question 9;Determining cash flows from investing activities is the ________ step in preparing the statement of cash flows.;First;Second;Third;Fourth;0.2 points;Question 10;Dina Corporation purchased plant assets for $60,000 cash. The journal entry to record the transaction that correctly shows the outflow of cash is;Investments 60,000;Cash 60,000;Plant Assets 60,000;Cash 60,000;Plant Assets 60,000;Purchases 60,000;Purchases 60,000;Plant Assets 60,000

 

Paper#79216 | Written in 18-Jul-2015

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