Unit 9 Practice for Review

Unit 9 Practice for Review - Unit 9: Statement of Cash...

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Unit 9: Statement of Cash Flows - Practice for Review
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1. The main disadvantage of the direct method of reporting cash flows from operating activities is that the necessary data are often costly to accumulate. (Points: 1) True False 2. When analyzing noncash accounts, no order of analysis is required, but it is more efficient to start with Retained Earnings and proceed upward in the account listing. (Points: 1) True False 3. Rarely would the cash flows from operating activities, as reported on the statement of cash flows, be the same as the net income reported on the income statement. (Points: 1) True False 4. Using the indirect method, if land costing $85,000 was sold for $145,000, the amount reported in the financing activities section of the statement of cash flows would be $85,000. (Points: 1) True False 5. If cash dividends of $135,000 were paid during the year and the company sold 1,000 shares of common stock at $30 per share, the statement of cash flows would report net cash flow from
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This note was uploaded on 10/05/2010 for the course ACCOUNTING n/a taught by Professor N/a during the Summer '09 term at Kaplan University.

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Unit 9 Practice for Review - Unit 9: Statement of Cash...

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