Question
7 simple accounting questions 1) If a bank loan increases from period one to period two, what happened to cash flow? Select one: a.Cash flow
7 simple accounting questions
1)
If a bank loan increases from period one to period two, what happened to cash flow?
Select one:
a.Cash flow increases
b.Cash flow remains the same
c.None of the choices
d.Cash flow decreases
2)
An increase in accounts receivable from one year to the next
Select one:
a.increases cash flow
b.decreases cash flow
c.none of the choices
d.does not affect cash flow
3)
A company's long-term investments account has a beginning balance of $100,000 and an ending balance of $60,000. The company's income statement reports a gain on sale of long-term investments of $10,000. How much is cash received from the sale of long-term investments? Assume that no additional investment is purchased in the accounting period.
Select one:
a.$50,000
b.$60,000
c.$40,000
d.$30,000
4)
The financing activities section of the cash flow statement
Select one:
a.is prepared differently under the direct method and the indirect method
b.shows a decrease in cash flow when a machine is purchased
c.tracks cash received from and paid back to investors and lenders
d.None of the available choices
5)
Selling a long-term asset increases cash flow because
Select one:
a.depreciation is credited
b.the asset is sold on credit
c.cash is received
d.the net book value of long-term assets increases
6)
The loss on sale of long-term investments
Select one:
a.is added to the cost of the sold investment to determine the amount of cash received from the sale of long-term investments
b.is deducted from the cost of the sold investment to determine the amount of cash received from the sale of long-term investments
c.reduces the amount of cash received but increases the book value of the long-term investments account
d.is not taken into consideration when preparing a statement of cash flow
7)
The amount of cash received from a sale of property, plant and equipment with depreciation can be determined from
Select one:
a.the statement of owners' equity
b.both the comparative balance sheet and income statement
c.the income statement only
d.the comparative balance sheet only
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