Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Module 2 Quiz 1 - Cash Flow Statement Total points 8 1. Question 1 Which of the following activities would affect the OPERATING section of

Module 2 Quiz 1 - Cash Flow Statement

Total points 8

1.

Question 1

Which of the following activities would affect the OPERATING section of the cash flow statement this year? (Check all that apply)

1 point

Selling some products for cash

Paying back debt

Buying a machine on credit

Issuing shares of stock

Buying inventory for cash

2.

Question 2

Which of the following activities would affect the INVESTING section of the cash flow statement this year? (Check all that apply)

1 point

Buying back some of your own shares

Depreciating a long-term asset

Spending cash on R&D

Buying a machine for cash

Paying a dividend

3.

Question 3

Which of the following activities would affect the FINANCING section of the cash flow statement? (Check all that apply)

1 point

Buying another company for cash

Receive cash from selling a product

Paying your income taxes

Issuing long-term debt

Paying a dividend

4.

Question 4

Which of the following would likely be true about the cash flow statement of a startup company? (Check all that apply)

1 point

It pays a lot of dividends

Its financing cash flows are positive

Its operating cash flow is insufficient to cover its investing cash flows

Its operating cash flow is highly positive

5.

Question 5

Suppose a firm recognizes sales revenue of $100 on its income statement for a period. Of this amount, $80 was for cash and $20 was on credit. What is the overall impact on the operating section of this information? (Ignore the cost side of the sale)

1 point

Cash from Operations goes up by 80

Cash from Operations goes down by 20

Cash from Operations goes up by 100

Cash from Operations goes up by 20

6.

Question 6

Suppose a firm recognizes sales revenue of $200 on its income statement for a period. Of this amount, $150 was for cash and $50 was on credit. How would this be shown on a cash flow statement that uses the INDIRECT method? (Ignore the cost side of things)

1 point

Net Income is $150 and there is an adjustment downward of $50 related to receivables

Net Income is $200 and there is an adjustment downward of $150 related to receivables

Net Income is $150 and there are no adjustments necessary on the cash flow statement

Net Income is $200 and there is an adjustment downward of $50 related to receivables

7.

Question 7

Suppose we are looking at a cash flow statement constructed using the INDIRECT method. We see a positive adjustment in the operating section of $1000 for Depreciation. Which of the following are correct interpretations of this? (Check all that apply)

1 point

Income was lower by $1000 because of Depreciation expense

The firm sold long-term assets for $1000

Depreciation provided cash of $1000

The firm invested $1000 of cash in long-term assets

8.

Question 8

Suppose we are looking at a cash flow statement constructed using the INDIRECT method. We see a NEGATIVE adjustment of $5000 related to Accounts Payable. Which of the following are correct interpretations of this? (Check all that apply)

1 point

The firm paid $5000 more to suppliers than they had recorded as expense on the income statement this year

The firm received $5000 from customers this year

The firm paid $5000 to suppliers this year

The firm paid $5000 less to suppliers than they had recorded as expense on the income statement this year

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

Financial Accounting Information For Decisions

Authors: John J. Wild

10th Edition

1260705587, 978-1260705584

More Books

Students also viewed these Accounting questions

Question

How would you describe your home and neighborhood?

Answered: 1 week ago

Question

The symbol Answered: 1 week ago

Answered: 1 week ago

Question

5. It is the needs of the individual that are important.

Answered: 1 week ago

Question

3. It is the commitment you show that is the deciding factor.

Answered: 1 week ago