Generally, if a short-term investment is to be classified as a cash equivalent, the term can be no longer than:

Multiple Choice

12 months from the date it was acquired.

3 months from the date it was acquired.

1 month from the date it was acquired.

6 months from the date it was acquired.

A corporation received $83,000 in cash from the sale of common stock and used the proceeds to pay $62,250 in bonds payable. As a result, the statement of cash flows would report:

Multiple Choice

$20,750 as the net cash provided by financing activities.

$20,750 as the net cash provided by investing activities.

$62,250 as the net cash used in investing activities.

$83,000 as the net cash provided by financing activities.

What figure is arrived at when the totals from each section of the statement of cash flows are added together?

Multiple Choice

net change in cash and cash equivalents

ending cash and cash equivalents

gross profit

beginning cash and cash equivalents

The Natural Company's cash balance at December 31, 20X1, was $235,000.

Net Income	$ 462,000
Depreciation	144,000
Increase in Accounts Receivable	66,500
Increase in Inventory	154,000
Decrease in Accounts Payable	46,800
Dividends Paid to Shareholders	29,250
Proceeds from Sale of Common Stock	585,000
Repayment of Bonds Payable	285,000
Proceeds of Sale of Equipment with Book Value of $118,000	75,500
Purchase of Land and Building	470,000

The Natural Company's Statement of Cash Flows would report Cash Flows from Investing Activities totaling:

Multiple Choice

$118,000

($403,000)

($394,500)

($75,500)

The net cash provided by operating activities is affected by:

Multiple Choice

the issue of bonds payable for cash.

proceeds of cash investments by stockholders.

a change in merchandise inventory.

a purchase of land for cash.

Operating activities include all except:

Multiple Choice

the payment of dividends to shareholders.

a decrease in accounts receivable.

a decrease in accounts payable.

an increase in wages payable.

Information from Zurich Company's income statement is as follows: net income $14,800, depreciation expense $10,100; gain on sale of equipment $2,700; proceeds from the sale of land $22,000. The net cash provided by operating activities is:

Multiple Choice

$14,800.

$22,200.

$5,400.

Information from Zwatsch Companys income statement is as follows: net income $49,000, depreciation expense $3,300; loss on sale of plant assets $5,600; gain on retirement of bonds $2,200; an increase in accounts receivable of $600 and dividend payments of $3,200. The net cash provided by operating activities is:

Multiple Choice

$51,800.

$58,300.

$51,900.

$55,100.

Chattel Company sold equipment that originally cost $35,500 and accumulated depreciation in the amount of $30,450 for $6,200 cash. What amount is reported in the Cash Flows from Financing Activities section of the Statement of Cash Flows for the sale of this equipment?

Multiple Choice

$3,900

$1,150

$30,450

$0

When using the indirect method to complete the operating activities section of the statement of cash flows, which of the following items would be deducted?

Multiple Choice

an increase in payroll taxes payable

Incorrect

a decrease in prepaid expenses

an increase in supplies

an increase in interest payable

Lampshade Manufacturing Company sold equipment that cost $12,000 for $5,600. A gain on sale of $1,600 was recorded. How is the Cash Flows from Investing Activities affected?

Multiple Choice

A cash inflow of $1,600 is recorded.

A cash inflow of $5,600 is recorded.

A cash inflow of $4,000 is recorded.

A cash inflow of $7,200 is recorded.