10 fast Questions
1.Miracle Company purchased treasury stock with a cost of $15,000 during 2012. During the year, the company paid dividends of $20,000 and issued bonds payable for proceeds of $866,000. Cash flows from financing activities for 2012 total (Points : 2) $846,000 net cash inflow.
$861,000 net cash inflow.
$866,000 net cash outflow.
$831,000 net cash inflow.
cash receipts from operating activities.
|Question 2. 2.The statement of cash flows reports each of the following except (Points : 2)|
cash payments from investing activities.
the net change in cash.
must be prepared on a daily basis.
|Question 3. 3.The statement of cash flows (Points : 2)|
summarizes the operating, financing, and investing activities of an entity.
is another name for the income statement.
is a special section of the income statement.
|Question 4. 4.Each of the following are particularly interested in the statement of cash flows except (Points : 2)|
conversion of bonds into common stock.
|Question 5. 5.Each of the following is an example of a significant noncash activity except (Points : 2)|
exchanges of plant assets.
issuance of debt to purchase assets.
|Question 6. 6.In Garland Company, land decreased $140,000 because of a cash sale for $140,000, the equipment account increased $40,000 as a result of a cash purchase, and Bonds Payable increased $130,000 from issuance for cash at face value. The net cash provided by investing activities is (Points : 2)|
Operating activities section
|Question 7. 7.Indicate where the event purchased land and a building with a mortgage would appear, if at all, on the indirect statement of cash flows. (Points : 2)|
Investing activities section
Financing activities section
Does not represent a cash flow
entity's ability to generate future income.
|Question 8. 8.The statement of cash flows should help investors and creditors assess each of the following except the (Points : 2)|
entity's ability to pay dividends.
reasons for the difference between net income and net cash provided by operating activities.
cash investing and financing transactions during the period.
|Question 9. 9.Generally, the most important category on the statement of cash flows is cash flows from (Points : 2)|
significant noncash activities.
cash flows from operating activities.
|Question 10. 10.The category that is generally considered to be the best measure of a company's ability to continue as a going concern is (Points : 2)|
cash flows from investing activities.
cash flows from financing activities.
usually different from year to year.