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FA Chapter 11 quiz
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Questions in this quiz (19)
1Paying off bonds payable is reported on the statement of cash flows under
- Ainvesting activities
- B. operating activities.
- Cfinancing activities
- Dnoncash investing and financing activities
2The sale of inventory for cash is reported on the statement of cash flows under
- A. noncash investing and financing activities.
- Bfinancing activities
- Cinvesting activities.
- Doperating activities.
3Selling equipment is reported on the statement of cash flows under
- Aoperating activities.
- B. investing activities.
- Cfinancing activities
- Dnoncash investing and financing activities.
4Which of the following terms appears on a statement of cash flows—indirect method?
- A. Collections from customers
- BCash receipt of interest revenue
- CPayments to suppliers
- D. Depreciation expense
5On an indirect method statement of cash flows, an increase in a prepaid insurance would be
- Aa. added to increases in current asset
- Bincluded in payments to suppliers.
- Cadded from net income.
- Ddeducted to net income.
6On an indirect method statement of cash flows, an increase in accounts payable would be
- A. added to net income in the operating activities section.
- Bdeducted from net income in the operating activities section.
- Cc. reported in the investing activities section
- D. reported in the financing activities section.
7On an indirect method statement of cash flows, a gain on the sale of PPE would be
- Areported in the investing activities section.
- Bignored, since the gain did not generate any cash.
- Cadded to net income in the operating activities section.
- D. deducted from net income in the operating activities section.
8Click Camera Co. sold equipment with a cost of $22,000 and accumulated depreciation
of $10,000 for an amount that resulted in a gain of $2,000. What amount should Click report on
the statement of cash flows as “proceeds from sale of PPE?”- A$10,000
- B$14,000
- C$20,000
- DSome other amount
9Which of the following items would not be found in Sheehan’s cash flow from
operating activities section of the cash flow statement?
- AGain on sale of equipment
- BDepreciation
- CIncrease in inventory
- D. Increase in share capital
10How do Sheehan’s accrued liabilities affect the company’s statement of cash flows for 20X6?
- A. They don’t, because the accrued liabilities are not yet paid
- BIncrease in cash provided by operating activities
- CIncrease in cash used by investing activities
- D. Increase in cash used by financing activities
11How do accounts receivable affect Sheehan’s cash flows from operating activities for 20X6?
- AIncrease in cash provided by operating activities
- B. Decrease in cash provided by operating activities
- CDecrease in cash used by investing activities
- DThey don’t, because accounts receivable result from investing activities
12Sheehan’s net cash provided by operating activities during 20X6 was
- A$30,000
- B$55,000.
- C$35,000
- D$46,000.
13Which of the following items would not be found in Sheehan’s cash flow from
investing activities section of the cash flow statement?- AProfit from the sale of PPE
- BProceeds from the sale of PPE
- CPurchase of other long-term assets (if any)
- D. Purchase of PPE
14The book value of equipment sold during 20X6 was $22,000. Sheehan’s net cash flow
from investing activities for 20X6 was- A. net cash used of $23,500.
- Bnet cash used of $53,000.
- Cnet cash used of $50,000
- Dnet cash used of $44,000
15Which of the following items would not be found in Sheehan’s cash flow from
financing activities section of the cash flow statement?- A. Proceeds from disposal of PPE
- BProceeds from bank loan.
- CPayment of dividends.
- DShares bought back.
16Sheehan’s largest financing cash flow for 20X6 resulted from
- Apayment of dividends.
- Bpurchase of equipment.
- Csale of equipment.
- Dissuance of shares
17Sheehan’s net cash flow from financing activities for 20X6 was
- Anet cash used of $50,000
- Bnet cash used of $20,000.
- Cnet cash provided of $9,000.
- Dnet cash used of $44,000.
18Sales totaled $830,000, accounts receivable increased by $60,000, and accounts
payable decreased by $40,000. How much cash did the company collect from customers?- A$730,000
- B$810,000
- C$890,000
- D. $770,000
19Income Tax Payable was $5,500 at the end of the year and $4,000 at the beginning.
Income tax expense for the year totaled $60,500. What amount of cash did the company pay for
income tax during the year?- A$60,500
- B$62,000
- C$64,500
- D$59,000
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- Description
- Quiz on FA Chapter 11 quiz, created by meli ssa on 04/03/2019.
- Author
- meli ssa
- Language
- English
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- 41
- History
- Created on 4 Mar 2019 · updated on 4 Mar 2019
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