1) Which of the following is not a required section of the cash flow statement? A) financing activities section B) operating activities section C) funding activities section D) investing activities section 2) Which of the following equations represent the relationship between the change in cash and cash equivalents (Cash) and the changes in other current assets (OCA), current liabilities (CL), Noncurrent Assets (NCA), noncurrent liabilities (NCL), capital stock (CS) and retained earnings (RE)? A) Cash=CL+NCL.OCA.NCA+CS+RE B) Cash=OCA+NCACLNCL+CS+RE C) Cash=CL+NCLOCANCACSRE D) Cash=OCA+NCACLNCLCSRE 3) Changes in which of the following are included in financing activities? A) accounts payable B) bonds payable C) accounts receivable D) property, plant, and equipment 4) A company borrows $10,000 and signs a 90 -day nontrade note payable. How would this event would be reflected in the statement of cash flows? A) cash outflow from investing activities B) cash inflow from investing activities C) cash outflow from financing activities D) cash inflow from financing activities 5) Under the indirect method, which of the following would be added to net income when determining net cash flows from operations? A) gain on the sale or a used truck B) amortization expense C) increase in inventory D) decrease in accounts payable 6) Under the indirect method, which of the following would be subtracted from net income when determining net cash flows from operations? A) gain on the sale or a used truck B) amortization expense C) decrease in prepaid rent D) increase in salaries payable 1) Which of the following is not a required section of the cash flow statement? A) financing activities section B) operating activities section C) funding activities section D) investing activities section 2) Which of the following equations represent the relationship between the change in cash and cash equivalents (Cash) and the changes in other current assets (OCA), current liabilities (CL), Noncurrent Assets (NCA), noncurrent liabilities (NCL), capital stock (CS) and retained earnings (RE)? A) Cash=CL+NCL.OCA.NCA+CS+RE B) Cash=OCA+NCACLNCL+CS+RE C) Cash=CL+NCLOCANCACSRE D) Cash=OCA+NCACLNCLCSRE 3) Changes in which of the following are included in financing activities? A) accounts payable B) bonds payable C) accounts receivable D) property, plant, and equipment 4) A company borrows $10,000 and signs a 90 -day nontrade note payable. How would this event would be reflected in the statement of cash flows? A) cash outflow from investing activities B) cash inflow from investing activities C) cash outflow from financing activities D) cash inflow from financing activities 5) Under the indirect method, which of the following would be added to net income when determining net cash flows from operations? A) gain on the sale or a used truck B) amortization expense C) increase in inventory D) decrease in accounts payable 6) Under the indirect method, which of the following would be subtracted from net income when determining net cash flows from operations? A) gain on the sale or a used truck B) amortization expense C) decrease in prepaid rent D) increase in salaries payable
