Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cashflow MULTIPLE CHOICE Instructions: Circle the best answer for each of the following questions. 1. Which of the following is not one of the major

image text in transcribed
Cashflow MULTIPLE CHOICE Instructions: Circle the best answer for each of the following questions. 1. Which of the following is not one of the major sections of the statement of cash flows? a. cash flows from financing activities cash flows from selling activities cash flows from operating activities b. c. d. cash flows from investing activities 2. Noncash investing and financing activities which may have a significant effect on future cash flows are reported: a. in the statement of cash flows b. in a separate schedule to accompany the statement of cash flows in the retained earnings statement c. d. in a footnote accompanying the balance sheet 3. Under the indirect method, which of the following items must be deducted from reported net income to determine net cash flow from operating activities? a. depreciation of fixed assets b. decreases in current assets c. decreases in current liabilities d. loss on sale of equipment 4. During the past year, Lockhart Inc. declared $40,000 in cash dividends. If the beginning and ending balance of the dividends payable account was $12,000 and $10,000, respectively, what amount of cash paid for dividends will appear in the cash flow from financing activities section of the statement of cash flows? a. $30,000 b. $38,000 c. $40,000 d. $42,000 5. Under the direct method, which of the following items must be added to operating expenses reported on the income statement to determine cash payments for operating expenses? a. increase in accrued expenses b. decrease in prepaid expenses increase in income taxes payable d. increase in prepaid expenses c

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Assurance Services

Authors: Timothy J Louwers, Robert J. Ramsay, David Sinason, Jerry R Strawser

1st Edition

0072954442, 9780072954449

More Books

Students also viewed these Accounting questions

Question

In Exercises find the indefinite integral. Sear e2x csc(ex) dx

Answered: 1 week ago