ACC quiz 10

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ACC quiz 10
2012-07-10 00:57:59

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  1. Cash equivalents are assets that are easily converted to cash regardless of their time to maturity. T or F?
  2. When the cash flows from operating, investing, and financing activities are combined to arrive at the overall net change in cash, a net decrease in cash is subtracted from the begining cash to calculate the ending cash balance. T or F?
  3. The reporting of financing activities is identical under the indirect and direct methods for the Statement of cash flows. T or F
  4. TRUE
  5. When the indirect method is used, if prepaid expenses decrease during the accounting period, the change in prepaid expense is
    added to net income
  6. What is the first step in calculating cash flows from operations when the indirect method is used?
    Find net income on the income statement
  7. Cash flows from financing activities:
    includes all cash inflows and outflows between a company and its stockholders
  8. Cash flows from investing activities include cash:
    In flows from the sale of long term investments
  9. Which is included in cash flows from financing activities
    Dividends paid to stockhoders
  10. Which of the following would be included in cash flows from investing activities
    Cash used to purchase equipment
  11. Which would  be included in cash flows from operating activities
    Cash proceeds from sales
  12. Cash and cash equivalents include:
    asstes that are short term, highly liquid, and are purchased within 3 months of maturity
  13. Which of the following types of information is not provided by the statement of cash flows
    Current profitability as measured by specific revenues and expenses.
  14. Your company owned equipment with a book value of $120,000 that was sold during this accounting period for $30,500 in cash, and purchased new equipment for cash of $148,000. Your company would record:
    a debit of $30,500 and a credit of $148,000 to the cash account for a net cash outflw of $117,500