Question 1

Which of the following would be added to net income using the indirect method?

		An increase in accounts receivable
		An increase in prepaid expenses
		Depreciation expense
		A decrease in accounts payable

0.4 points

Question 2

Each of the following is an example of a significant noncash activity except

		conversion of bonds into common stock.
		exchanges of plant assets.
		issuance of debt to purchase assets.
		stock dividends.

0.4 points

Question 3

In preparing the statement of cash flows, determining the net increase or decrease in cash requires the use of

		the adjusted trial balance.
		the current period's balance sheet.
		a comparative balance sheet.
		a comparative income statement.

0.4 points

Question 4

Jeans Vegetable Market had the following transactions during 2016:

1. Issued $50,000 of par value common stock for cash. 2. Repaid a 6 year note payable in the amount of $22,000. 3. Acquired land by issuing common stock of par value $100,000. 4. Declared and paid a cash dividend of $2,000. 5. Sold a long-term investment (cost $3,000) for cash of $8,000. 6. Acquired an investment in IBM stock for cash of $15,000.

What is the net cash provided (used) by investing activities?

		$15,000
		$33,000
		($7,000)
		$8,000

0.4 points

Question 5

If a gain of $12,000 is incurred in selling (for cash) office equipment having a book value of $110,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is

		$98,000.
		$122,000.
		$110,000.
		$12,000.

0.4 points

Question 6

Each of the following are particularly interested in the statement of cash flows except

		creditors.
		employees.
		shareholders.
		government agencies.

0.4 points

Question 7

In addition to the three basic financial statements, which of the following is also a required financial statement?

		the "Cash Budget"
		the Statement of Cash Flows
		the Statement of Cash Inflows and Outflows
		the "Cash Reconciliation"

0.4 points

Question 8

If a company has both an inflow and outflow of cash related to property, plant, and equipment, the

		two cash effects can be netted and presented as one item in the investing activities section.
		cash inflow and cash outflow should be reported separately in the investing activities section.
		two cash effects can be netted and presented as one item in the financing activities section.
		cash inflow and cash outflow should be reported separately in the financing activities section.

0.4 points

Question 9

Which one of the following items is not necessary in preparing a statement of cash flows?

		Determine the change in cash
		Determine the cash provided by operations
		Determine cash from financing and investing activities
		Determine the cash in all bank accounts

0.4 points

Question 10

Wilson Company reported net income of $105,000 for the year ended December 31, 2016. During the year, inventories decreased by $15,000, accounts payable decreased by $20,000, depreciation expense was $18,000 and a gain on disposal of equipment of $9,000 was recorded. Net cash provided by operating activities in 2016 using the indirect method was

		$101,000.
		$109,000.
		$120,000.
		$118,000.