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  81. A statement of cash flows should reconcile the differences between the beginning and ending balances of: A. Cash. B. Cash equivalents. C. Cash and cash equivalents. D. Working capital. E. Cash, cash equivalents, and long term investments. 82. The Merchandise Inventory for Year 1 was $100,000 and for Year 2 was $94,000. The Accounts Payable.
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31. After recording the initial purchase of non-strategic investments, an entity must continue to measure the investment at fair value; subsequent profits or losses arising are recognized in net income. 32. Changes in investment values are recognized with a credit to short-term investments and a debit to unrealized gains. 33. Investments non-strategic.
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112. Hope Corporation's calendar year-end 2015 and 2014 balance sheets showed the following items: Additional information about the corporation's activities during 2015 follows: Prepare a statement of cash flows for calendar 2015 that follows the indirect method of calculating the net cash provided (or used) by operating activities.     .
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  51. The statement of cash flows reports: A. Operating activities. B. Financing activities. C. Investing activities. D. Noncash financing and investing activities. E. All of these answers are correct. 52. A cash equivalent is an investment that: A. Is readily convertible to a known amount of cash. B. Is subject to an insignificant risk of changes in value. C..
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21. Accounting standards require companies to include a statement of cash flows in a complete set of financial statements. 22. The statement of cash flows explains how transactions and events impact the end-of-period cash balance to produce the end-of-period cash balance. 23. The direct method is required by IFRS because it provides.
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2. The statement of cash flows only measures outflows of cash during a period. 3. Investments must be within 6 months of their maturity dates to be classified as cash equivalents. 4. The statement of cash flows explains the difference between the beginning and ending balances of cash and cash equivalents. 5. Internal.
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16. Conversion of preferred shares to common shares is disclosed in the financing section of the statement of cash flows. 17. A noncash purchase of land is reported in the investing section of the statement of cash flows as a separate line item. 18. A noncash investing transaction should be disclosed as.
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142. Match each of the following items with the appropriate definition. 1.Indirect method A financial statement that reports the cash inflows and outflows for an accounting period, and that classifies those cash flows as operating activities, investing activities, and financing activities.   2.Investing activities Transactions with a company's owners and creditors which include getting cash.
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6. Bank overdrafts repayable on demand may be included in the cash and cash equivalent balance. 7. Many business decisions are based on cash flow evaluations. 8. The statement of cash flows helps financial statement users evaluate a company's earnings performance at a point in time. 9. Decisions on whether a company can.
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104. For each of the following items, indicate whether it would be classified as either an (O) operating activity, an (I) investing activity, a (F) financing activity, or a (N) noncash financing and investing activity. _______ (1) Cash sales. _______ (2) Sale of shares of another company. _______ (3) Signed a note payable. _______.
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36. Most acquisitions of property, plant and equipment are reported on the statement of cash flows as cash used by investing activities. 37. The proceeds from the disposal of property, plant and equipment are reported on the statement of cash flows as cash used by investing activities. 38. Both the direct and.
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36. Purchases of long-term debt investments are never initially recorded at fair value. 37. The distinguishing feature of debt investments held for the long-term is that they are held to maturity. 38. Repeat Inc. purchased $60,000 (40%) worth of Quiet Corp. common shares. The journal entry to record the purchase should include.
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  96. Changes in notes payable, non-current liabilities, and equity accounts are usually used in calculating and reporting: A. Cash flows from investing activities. B. Cash flows from operating activities. C. Cash flows from financing activities. D. Non-cash financing activities. E. Non-cash balance sheet accounts. 97. Using the indirect method to calculate the net cash provided (or.
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46. Investing activities include: (a) the purchase and sale of long-term assets, (b) lending and collecting on notes receivable, (c) the purchase and sale of investments other than cash equivalents. 47. Financing activities include receiving cash from issuing debt and receiving dividends from investments in other corporations. 48. A change in retained.
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  91. Which of the following items is reported in the body of the statement of cash flows? A. Declaration of a cash dividend. B. Payment of a cash dividend. C. Declaration of a share dividend. D. Distribution of a share dividend. E. Share split. 92. Acquisitions of long-term assets: A. Have no impact on cash flows. B. Are.
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41. Reconstruction analysis is used to identify the types of purchases and disposals of property, plant and equipment by reproducing the entries that occurred in the year. 42. The sale of equipment increases investing cash flows. 43. Under the indirect method, an increase in income taxes payable is added to net income.
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  66. Non-cash investing and financing activities may be disclosed: A. In a note to the statement of cash flows. B. In a separate schedule attached to the bottom of the statement of cash flows. C. In the investing section of the statement of cash flows. D. In the financing section of the statement of.
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132. The purpose of the statement of cash flows is to report the major items comprising _____________ and ________________. 133. The most important section of the statement of cash flows in analyzing the financial health of a business is the ____________ section. 134. _______________ include the cash effects of transactions and events.
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137. All cash transactions eventually affect noncash ____________ accounts. 138. IFRS encourages the use of the ______________ method in preparing the statement of cash flows. 139. The reporting of financing activities is _________________ under the direct and indirect methods. 140. Acquisitions of long-term assets are ___________ activities and are reported in the ___________.
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121. Lil Bean Co.'s income statement showed the following for the year ended December 31, 2015: net income, $86,000; depreciation expense, $32,000; and gain on sale of plant assets, $7,000. An examination of the company's current assets and current liabilities showed that the following changes occurred because of operating activities:.
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  71. The appropriate statement of cash flow activity category for the payment of wages is: A. Operating. B. Financing. C. Investing. D. Schedule of noncash investing or financing activity. E. Not reported on the statement of cash flows. 72. The appropriate statement of cash flow activity category for the issuance of common shares for cash is: A..
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26. Non-strategic debt investments are initially recorded using either the fair value through profit or loss method or amortized cost method. 27. Long-term bonds are examples of non-strategic investments. 28. For non-strategic debt investments, the fair value through profit and loss method allows the inclusion of any transaction costs in addition to.
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  61. Cash flows from selling long term investments are reported in the statement of cash flows as: A. Operating activities. B. Financing activities. C. Investing activities. D. Noncash activities. E. Not reported. 62. Cash flows from cash dividends and interest received are reported in the statement of cash flows as: A. Operating activities. B. Financing activities. C. Investing activities. D..
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103. For each of the following items, indicate whether it would be classified as an (O) operating activity, as an (I) investing activity, as a (F) financing activity, or as a (N) noncash financing and investing activity. _______ (1) Received dividends from shares owned in another company. _______ (2) Collected accounts receivable.
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  86. While analyzing Tektron's statement of cash flows, you note that there was a net cash outflow from investing activities of $87,000, while cash provided by operations was $95,000. This means that: A. Tektron only had a net increase in cash of $7,000. B. Tektron is spending too much on investing activities. C..
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  56. Managers use cash flow predictions to: A. Make decisions about acquiring new property, plant and equipment. B. Insource or outsource production of a product. C. Keep or eliminate a product line. D. Maintain or downsize a department. E. All of these answers are correct. 57. Transactions with the owners of a business or transactions with.
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