AC116 Unit 10 Quiz - Cash

The cash effects of transactions that create revenues and expenses are: A. financing activities. B. investing activities. C. operating activities. D. processing activities.

If accounts payable have increased during a period: A. revenues on an accrual basis are less than revenues on a cash basis. B. expenses on an accrual basis are less than expenses on a cash basis. C. expenses on an accrual basis are greater than expenses on a cash basis. D. expenses on an accrual basis are the same as expenses on a cash basis.

The primary purpose of the statement of cash flows is to: A. Provide information about the investing and financing activities during a period. B. Prove that revenues exceed expenses if there is a net income. C. Provide information about the cash receipts and cash payments during a period. D. Facilitate banking relationships.

Which of the following transactions does not affect cash during a period? A. Write-off of an uncollectible account B. Collection of an accounts receivable C. Sale of treasury stock D. Exercise of the call option on bonds payable

Significant noncash transactions would not include: A. conversion of bonds into common stock. B. asset acquisition through bond issuance. C. treasury stock acquisition. D. exchange of plant assets.

Financing activities involve: A. lending money. B. acquiring investments. C. issuing debt. D. acquiring long-lived assets.

Cash receipts from interest and dividends are classified as: A. financing activities. B. investing activities. C. operating activities. D. either financing or investing activities.

If a company reports a net loss, it: A. may still have a net increase in cash. B. will not be able to pay cash dividends. C. will not be able to get a loan. D. will not be able to make capital expenditures.

If a company has both an inflow and outflow of cash related to property, plant, and equipment, the: A. two cash effects can be netted and presented as one item in the investing activities section. B. cash inflow and cash outflow should be reported separately in the investing activities section. C. two cash effects can be netted and presented as one item in the financing activities section. D. cash inflow and cash outflow should be reported separately in the financing activities section.

The category that is generally considered to be the best measure of a company's ability to continue as a going concern is: A. cash flows from operating activities. B. cash flows from investing activities. C. cash flows from financing activities. D. usually different from year to year.

Pare Company reported a net loss of $30,000 for the year ended December 31, 2017. During the year, accounts receivable decreased $15,000, merchandise inventory increased $25,000, accounts payable increased by $30,000, and depreciation expense of $20,000 was recorded. During 2017, operating activities: A. used net cash of $10,000. B. used net cash of $25,000. C. provided net cash of $25,000. D. provided net cash of $10,000.

During the year, Salaries Payable decreased by $5,000. If Salary Expense amounted to $174,000 for the year, the cash paid to employees (including deductions from gross pay) is: A. $179,000 B. $174,000 C. $169,000 D. $184,000

In Jude Company, land decreased $150,000 because of a cash sale for $150,000, the equipment account increased $60,000 as a result of a cash purchase, and Bonds Payable increased $120,000 from issuance for cash at face value. The net cash provided by investing activities is: A. $150,000. B. $210,000. C. $90,000. D. $270,000.

The following data are available for Two-off Company. Increase in accounts payable $120,000 Increase in bonds payable $300,000 Sale of investments $150,000 Issuance of common stock $160,000 Payment of cash dividends $90,000 Net cash provided by financing activities is: A. $180,000 B. $370,000 C. $360,000 D. $420,000

The following data are available for Sampson Corporation. Net income $200,000 Depreciation expense $60,000 Dividends paid $90,000 Loss on sale of land $15,000 Decrease in accounts receivable $30,000 Decrease in accounts payable $45,000 Net cash provided by operating activities is: A. $140,000 B. $260,000 C. $160,000 D. $240,000

Adama Company reported a net loss of $6,000 for the year ended December 31, 2017. During the year, accounts receivable increased $15,000, merchandise inventory decreased $12,000, accounts payable decreased by $20,000, and depreciation expense of $12,000 was recorded. During 2017, operating activities: A. used net cash of $17,000. B. used net cash of $29,000. C. provided net cash of $24,000. D. provided net cash of $21,000.

If a loss of $25,000 is incurred in selling (for cash) office equipment having a book value of $90,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is: A. $65,000 B. $90,000 C. $115,000 D. $25,000

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: A. $98,000 B. $122,000 C. $110,000 D. $12,000

In Lynne Company, there was an increase in the land account during the year of $43,000. Analysis reveals that the change resulted from a cash sale of land at cost $115,000 and a cash purchase of land for $158,000. In the statement of cash flows, the change in the land account should be reported in the investment section: A. as a net purchase of land, $43,000. B. only as a purchase of land $158,000. C. as a purchase of land $158,000 and a sale of land $115,000. D. only as a sale of land $115,000.

In the Papyrus Corporation, cash receipts from customers were $136,000, cash payments for operating expenses were $102,000, and one-third of the company's $9,300 income taxes were paid during the year. Net cash provided by operating activities is: A. $34,000 B. $24,700 C. $30,900 D. $27,800