Scribd
Upload
364 views3 pages

NYIF Accounting Module Six Quiz

The document contains a 14 question multiple choice quiz about the statement of cash flows. The quiz covers topics such as: - The primary purpose of the statement of cash flows - Classifying items as operating, investing, or financing activities - Using the direct and indirect method to prepare the statement of cash flows - Adjusting net income for non-cash items under the indirect method - Computing cash flows from changes in balance sheet accounts like accounts receivable and wages payable

Uploaded by

Shahd Okasha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
364 views3 pages

NYIF Accounting Module Six Quiz

The document contains a 14 question multiple choice quiz about the statement of cash flows. The quiz covers topics such as: - The primary purpose of the statement of cash flows - Classifying items as operating, investing, or financing activities - Using the direct and indirect method to prepare the statement of cash flows - Adjusting net income for non-cash items under the indirect method - Computing cash flows from changes in balance sheet accounts like accounts receivable and wages payable

Uploaded by

Shahd Okasha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

Module 6 Quiz:

Multiple Choice:

1.The primary purpose of the statement of cash flows is to provide information


a. about a company’s cash receipts and cash payments during an accounting period.
b. about a company’s investing and financing activities during an accounting period.
c. regarding a company’s financial position at the end of an accounting period.
d. regarding the operating activities for a period of time.

2. Which of the following is not a cash flow from operating activities?


a. Collections from customers
b. Interest and taxes paid
c. Purchase of a building for cash
d. Cash payments to employees

3. Which of the following is an increase in cash flows from investing activities?


a. Sale of property, plant, and equipment for cash
b. Purchase of property, plant, and equipment for cash
c. Payment of operating expenses
d. Purchase of securities that are not cash equivalents

4. Which of the following would not be represented in the financing section of the statement of cash
flows?
a. Long-term bonds payable issued
b. Issuing of equity securities
c. Purchase of treasury stock
d. Make a loan to a supplier

5. The collection of a loan repayment from a stockholder would appear in which section of the
statement of cash flows?
a. Operating
b. Investing
c. Financing
d. Other

6. The easiest way to identify operating cash flows under the direct method is to
a. examine the cash column of the balance sheet equation.
b. examine the income statement.
c. examine changes in current asset and current liability accounts.
d. adjust net income for non-cash items.

7. A sale of long-lived assets in exchange for cash would appear in which section of the statement of
cash flows?
a. Operating
b. Investing
c. Financing
d. Other

8. The records of Williams Corporation showed a net loss of $10,000; depreciation expense of
$15,000; and an increase in accounts receivable of $6,000. The amount of cash provided by (used
in) operating activities, assuming no other transactions, is

Net Loss -10,000


Adjusting with non cash item +15,000
Increase in AR (6,000)
Cash flow from opertioan -1,000

a. $(4,000)
b. $(1,000)
c. $ 5,000
d. $11,000

9. Which of the following items would be added to net income to compute cash provided by operations
under the indirect method?
a. Increase in merchandise inventory
b. Increase in accrued expenses payable
c. Decrease in accounts payable
d. Increase in bonds payable

10. Under the indirect method of preparing statement of cash flows, all of the following would be
added to net income to arrive at cash flow from the operations, except
a. depreciation expense.
b. increase in accounts payable.
c. loss on the sale of equipment.
d. increase in accounts receivable.

11. When preparing a statement of cash flows, the difference between the direct and indirect method
occurs in which of the following section(s)?
a. Financing activities
b. Operating activities
c. Investing activities
d. All of the above

12. Which statements would be used to analyze a company’s cash flow from the sale of an operating
asset?
a. Income statement and the balance sheet
b. Only the income statement
c. Only the balance sheet
d. The retained earnings statement

13. The beginning balance in Accounts Receivable was $15,000; cash collections during the period
were $200,000; and the ending balance in Accounts Receivable was $7,500. The revenue from
sales during the period was
2020
AR 15,000

2021
AR 7,500

Cash collection $200,000


a. $192,500
b. $200,000
c. $207,500
d. $215,000

14. The Wages Payable account had a beginning balance of $5,000 and an ending balance of $7,000.
Wage expense for the period was $79,000. How much cash was paid for wages during the period?
2020
Wages Payables 5,000

2021
Wages Payable 7000

2021
7,000

Income statement 2021


- Wages Expense -79,000
Net Income -79,000

Cash -77,000 Wages Payable +2000

R.E. 79,000-

a. $77,000
b. $79,000
c. $81,000
d. $86,000

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy