Reference no: EM131842421

Question 1: What is the Net Cash provided by Operations when the indirect method to prepare cash flow statements is use?

$13,200
None of the other alternatives are correct
$11,200
$6,300
$8,100

Question 2: What is the total adjustment to reconcile profit to net cash under the indirect cash flow method?
$ (1,750) ?
None of the other alternatives are correct
$ (4,660)
$ (260)
$ (2,920)

Question 3: Indicate whether Receivedadvance payments from customerson orders for custom-made goods is:
a cash flow from a financing activity
a cash flow from an operating activity ?
None of the other alternatives are correct
a cash flow from an investing activity
not part of the cash flow statement (indirect method)

Question 4: What is the total Cash Payments for operating expenses when the direct method is used to prepare the cash flow statement?
($25,050)
($45,000)
($45,730)
($65,000)
None of the other alternatives are correct

Question 5: Indicate in which of the three categories Bondsissued for cash should appear:
not part of the cash flow statement (direct method)
None of the other alternatives are correct
cashflowsfrom operating activities (direct method)
cash flows from investing activities
cash flows from financing activities

Question 6: Which of the following is reported in the Financing section of Bernie's Ltd cash flow statement when using the indirect method?
Inflow of cash for loan to Dennis's Ltd reflected as $26,000 ?
Cash received for payment of dividends reflected as ($41,000)
Outflow of cash for loan to Dennis's Ltd. reflected as ($26,000)
Cash paid for issuing shares reflected as $242,000
None of the other alternatives are correct

Question 7: What is the total cash outflow from investing activities as it appears on the cash flow statement when using the indirect method?
($735,000)
The total for investing activities is actually a net cash inflow.
($149,000)
($586,000)
($612,000)

Question 8: Indicate in which of the three categories Depreciation of Equipment should appear:
cashflowsfrom operating activities (direct method)
cash flows from investing activities
not part of the cash flow statement (direct method)
cash flows from financing activities
None of the other alternatives are correct

Question 9: How much is the net adjustment to net income under the operating activities section for inventory as it appears on the cash flow statement when using the indirect method?
$6,000
$7,000
None of the other alternatives are correct
($7,000)
The adjustment for inventory does not fall under the operating activities section.

Question 10: What is the total Cash Payments for operating expenses when the direct cash flow method is used?
($26,500)
None of the other alternatives are correct
($33,500)
($26,400)
($27,430)

Question 11: What is the Net cash used by Investing activities when the indirect method to prepare cash flow statements is use?
$8,000
($2,000)
($67,500)
($52,000)
None of the other alternatives are correct

Question 12: What was the total amount paid to ALL suppliers during 20X5 when using the direct method?
None of the other alternatives are correct
($270,000)
$314,000
$44,000
$270,000

Question 13: Indicate whether Investedcash in a money market fund (cash may be easilywithdrawn from the fund) is:
a cash flow from an operating activity
None of the other alternatives are correct
not part of the cash flow statement (indirect method)
a cash flow from an investing activity
a cash flow from a financing activity

Question 14: Indicate whether Retiredbonds payable at a loss is:
a cash flow from a financing activity
not part of the cash flow statement (indirect method)
a cash flow from an investing activity
None of the other alternatives are correct
a cash flow from an operating activity

Question 15: By how much the change in Accounts Payable has generated or (used) cash when the indirect cash flow method is used?
($4,400)
$10,400
None of the other alternatives are correct
$4,400 ?
$14,000

Question 16: Indicate in which of the three categories Cash loaned to borrowers should appear and whether it is an inflow or an outflow of cash:
None of the other alternatives are correct
Financing inflow
Financing outflow
Operating inflow
Investing outflow

Question 17: Indicate in which of the three categories Sale of long-terminvestments for cash should appear and whetherit is an inflow or an outflow of cash:
Financing outflow
Operating inflow
None of the other alternatives are correct
Investing outflow
Financing inflow

Question 18: Indicate in which of the three categories Cash receipts from customers should appear:
cash flows from investing activities
cashflowsfrom operating activities (direct method)
None of the other alternatives are correct
cash flows from financing activities
not part of the cash flow statement (direct method)

Question 19: The Net Cash provided by operating activities when using the indirect method is:
$1,820
more than $2,000
$1,570
None of the other alternatives are correct
less than $250

Question 20: Total cash used for payment of income taxes in 20X5 as it appears on the cash flow statement when using the direct method was:
$36,000
($38,000)
None of the other alternatives are correct
$38,000
($36,000) ?

Question 21:What where the proceeds of the sale of the machinery when the indirect method to prepare cash flow statements is use?
($4,000)
$4,000
($2,000)
None of the other alternatives are correct
$8,000

Question 22: What is the Free Cash for Company XYZ for the year?
$4,000
($91,000)
$61,000
None of the other alternatives are correct
$95,000

Question 23: The total amount of Cash payments to suppliers when using the direct method is:
$3,430
$2,970
$3,630
None of the other alternatives are correct
$3,530 ?

Question 24: What was the total payment of Cash Dividends when the direct method is used to prepare the cash flow statement?
($1,000)
$3,000
($4,000) ?
($3,000)
None of the other alternatives are correct

Question 25: What is the Total adjustment to reconcile profit to net cash when the indirect method to prepare cash flow statements is use?
None of the other alternatives are correct
($16,800)
($82,300)
($17,830) ?
($87,730)

Question 26: The gain on sale of PPE should be reported in which of the following ways on Bernie's Ltd cash flow statement when using the indirect method?
It should not appear on the cash flow statement as it is a non-cash item.
It should be deducted from net income in an opening paragraph before the operations section
It should be deducted from net income in the operations section of the statement of cash flows
It should be added to net income in the operations section of the statement of cash flows.
It should be deducted in the investing section of the cash flow statement

Question 27: Indicate in which of the three categories Cash loaned to borrowers should appear:
cash flows from financing activities
cash flows from investing activities
not part of the cash flow statement (direct method)
None of the other alternatives are correct
cashflowsfrom operating activities (direct method)

Question 28: What is the total adjustment to reconcile profit to net cash when the indirect method is used to prepare the cash flow statement?
($80,850)
($16,880)
($15,550)
None of the other alternatives are correct
($87,180)

Question 29: The total amount of Cash Receipts from Customers when using the direct method is:
$5,550 ?
None of the other alternatives are correct
$5,000
More than $5,600
$4,450

Question 30: Indicate in which of the three categories Cash receipts from customers should appear and whetherit is an inflow or an outflow of cash:
Investing outflow
Operating inflow
Financing outflow
None of the other alternatives are correct
Financing inflow

Question 31: Which of the following is reported in the Investing activities section when using the indirect method is?
Cash inflow for purchase of a new machine for $1,200
None of the other alternatives are correct
Cash outflow for the loss on the sale of a machine for $20
Cash outflow for the interests paid for $110
Cash outflow for the issuance of notes payables for $230 ?

Question 32: What is the total Cash payments to suppliers when the direct method is used to prepare the cash flow statement?
($250,100) ?
None of the other alternatives are correct
($214,020)
($286,380)
($280,050)

Question 33: What is the Accumulated Depreciation of the machinery sold when the indirect method to prepare cash flow statements is use?
None of the other alternatives are correct
($8,000)
$16,000
$2,000 ?
$10,000

Question 34: How much was the total cash receipts from operating activities for 20X5 as it appears on the cash flow statement when using the direct method?
$650,000
$700,000
$674,000
None of the other alternatives are correct
$696,000 ?

Question 35: What is the Net Cash used by financing activities when the indirect method to prepare cash flow statements is use?
($5,000)
($15,000)
($9,000)
None of the other alternatives are correct
($17,000)

Question 36: What is the Net cash used by Investing activities when the indirect cash flow method is used?
$ 3,500
None of the other alternatives are correct
$0 ?
$ (2,910)?
$ (3,170)

Question 37: Indicate in which of the three categories Acquisition of plant assets for cash should appear and whetherit is an inflow or an outflow of cash:
Financing outflow
Operating inflow
None of the other alternatives are correct
Financing inflow
Investing outflow

Long term notes payable were issued

Question 38: What is the adjustment in Income Tax payable to reconcile profit when using the indirect method is?
No change
Cash inflow for $120 ?
Income tax expense and payable are not reported in the cash flow statement ?
None of the other alternatives are correct
Cash outflow for $120

Question 39: By how much has the changes in Working Capital generated or (used) cash when the indirect method to prepare cash flow statements is use?
None of the other alternatives are correct
$31,800 ?
($35,500)
($28,800)
($60,600)

Question 40: The Cash Flow statement:
represents a proof of cash (shows the opening and closing balance and how the company goes from one to the other)
suffers from the deficiency that it does not reconcile to the net income of the company
none of the above
must be the first statement completed when preparing the financial statement
can only be prepared if the cash paradigm is followed

Question 41: What is the Net Cash used by financing activities when the indirect cash flow method is used?
($300) ?
None of the other alternatives are correct
$2,500
($200)
$500

Question 42: Indicate in which of the three categories Dividends paid should appear:
cashflowsfrom operating activities (direct method)
not part of the cash flow statement (direct method)
None of the other alternatives are correct
cash flows from investing activities
cash flows from financing activities ?

Question 43: What is the total Cash payments for Income Taxes when the direct method is used to prepare the cash flow statement?
($10,700)
($12,000)
($13,300)
None of the other alternatives are correct
($9,900)

Question 44: Indicate in which of the three categories Purchase of merchandise on Account should appearand whether it is an inflow or an outflow of cash:
Investing outflow
None of the other alternatives are correct
Financing inflow
Financing outflow
Operating inflow

Question 45: How much was the total cash collections from customers in 20X5 as it appears on the cash flow statement when using the direct method?
$650,000
$682,000
None of the other alternatives are correct
$822,000
$714,000 ?

Question 46: Indicate whether Gave large cash contribution to local university is:
a cash flow from a financing activity
not part of the cash flow statement (indirect method)
None of the other alternatives are correct
a cash flow from an investing activity
a cash flow from an operating activity

Question 47: What is the adjustment in Accounts Receivables to reconcile profit when using the indirect method is?
No change
Cash outflow for $550
Accounts Payables are reported in the financing activities section
Cash inflow for $550
None of the other alternatives are correct

Question 48: The total "Net Cash used by Investing Activities" when using the direct method was:
None of the other alternatives are correct
positive $50
negative $1,170
positive $30
negative $1,200

Question 49: What is the Carrying amount for the machinery that was sold when the indirect method to prepare cash flow statements is use?
$6,000
None of the other alternatives are correct
$10,000
$8,000
($2,000)

Question 50: What is the Carrying amount for the machinery that was sold when the indirect method is used to prepare the cash flow statement?
$12,000
$10,500
$2,000
$10,000
None of the other alternatives are correct

Question 51: What is the Free Cash for Company XYZ for the year?
($18,000)
$77,000
None of the other alternatives are correct
($45,000)
$25,000

Question 52: What is the Net cash used by Investing activities when the indirect method is used to prepare the cash flow statement?
($500)
($55,000)
($66,500)
None of the other alternatives are correct
$9,000

Question 53: Which of the following is reported in the Investing section of Bernie's Ltd cash flow statement when using the indirect method?
None of the other alternatives are correct
Purchase of PPE reflected as ($735,000) and Purchase of a subsidiary reflected as ($26,000)
Purchase of PPE reflected as $735,000
Purchase of PPE reflected as ($735,000)
Purchase of a subsidiary reflected as ($26,000)

Question 54: Indicate whether Loaned cash to help financethe start of a new biotechnology firm is:
None of the other alternatives are correct
a cash flow from an operating activity
a cash flow from an investing activity
a cash flow from a financing activity
not part of the cash flow statement (indirect method)

Question 55: What amount was paid to employees during 20X5 as it appears on the cash flow statement when using the direct method?
$140,000
($128,000)
None of the other alternatives are correct
($140,000)
$128,000

Question 56: The main headings in the Cash Flow Statement are:
Operating, Financing and Dividends
None of the above
Cash, Financing and Investing
Operations, Financing, Investing ??
Income, Asset Acquisition, Financing

Question 57: What is the Net Cash provided by Operations when the indirect cash flow method is used?
$6,220
None of the other alternatives are correct
$5,830
$500
($500)

Question 58: By how much the change in Accounts Payable has generated or (used) cash when the indirect method is used to prepare the cash flow statement?
($6,330)
$6,330 ?
$140,000
None of the other alternatives are correct
$110,050

Question 59: Indicate in which of the three categories Preferred shares issued for cash should appear and whetherit is an inflow or an outflow of cash:
Financing outflow
Investing outflow
Operating inflow
None of the other alternatives are correct
Financing inflow ?

Question 60: What was the total Cash Receipts from Customers when the direct cash flow method is used?
$97,090
$130,000
None of the other alternatives are correct
$127,090
$97,000

Question 61: What is the adjustment in Accounts Payable to reconcile profit when using the indirect method is?
No change
Accounts Payable are reported in the financing activities section
None of the other alternatives are correct
Cash inflow for $330
Cash outflow for $330