Upload your study docs or become a
Course Hero member to access this document
Unformatted text preview: Word
2067 9 03
NO 5 7 9 8 8468 HAFF2:06
A A ? CG ...
afm 101 - Wait
Q
igit
76 31A3 314
100 BE 3 17
Web 18
100% , DR
32) On an indirect method statement of cash flows, a decrease in inventory would be:
A) netted against any decreases in accounts payable
B) deducted from net income
C) reflected in the investing activities section
D) added to net income
Answer: De
Diff: 2
Type: MC
L.O.: 9-3-
CPA COMPETENCIES: Chapter 9
1.2.2 Evaluates treatment for routine transactions
1.3.1 Prepares financial statements
33) Under the indirect method of preparing a statement of cash flows, a decrease in the balance in the Accounts Receivable account during the year is:"
A) added in the operating activities section
B) added in the investing activities section
C) subtracted in the operating activities section
D) subtracted in the financing activities section
Answer: A~
Diff: 2
Type: MC~
L.O.: 9-3-
CPA COMPETENCIES: Chapter 9
1.2.2 Evaluates treatment for routine transactions
1.3.1 Prepares financial statements
34) A gain on sale of capital assets is added to net income when preparing the operating activities section of a statement of cash flows under the indirect method."
Answer: FALSE
Diff: 2
Type: TF
L.O.: 9-3
CPA COMPETENCIES: Chapter 9
1.2.2 Evaluates treatment for routine transactions
1.3.1 Prepares financial statements
35) Under ASPE interest payments on debt are considered financing activities on a statement of cash flows."
Answer: FALSE
Diff: 2
Type: TF-
L.O.: 9-3-
CPA COMPETENCIES: Chapter 9
1.2.2 Evaluates treatment for routine transactions
1.3.1 Prepares financial statements
36) Non cash activities such as an exchange of shares for a piece of equipment need to be disclosed either on a separate schedule at the bottom of the statement of cash flows or in a note to the financial statements."
Answer: TRUE
Diff: 1
Type: TF-
L.O.: 9-3-
CPA COMPETENCIES: Chapter 9
1.2.2 Evaluates treatment for routine transactions
1.3.1 Prepares financial statements
37) Non cash activities such as an exchange of shares for a piece of equipment do not need to be disclosed.
Answer: FALSE~
Diff: 1
Type: TF
L.O.: 9-3-
CPA COMPETENCIES: Chapter 9
1.2.2 Evaluates treatment for routine transactions
1.3.1 Prepares financial statements
38) The majority of organizations use the indirect method when preparing their statement of cash flows.
114807 73...
View
Full Document
