App15A - Appendix 15A The Direct Method of Determining the...

Appendix 15A, The Direct Method of Determining the Net Cash Provided by…
Question Type
Difficulty LO1: Sources versus uses LO2: Operating, investing, financing LO3: Indirect method LO4: Free cash flow LO5: Direct
method (Appendix 15A)
Professional Exam Adapted
ID Origin CMA/CPA origin
1 T/F H x New,7/13/95,V E.N.
2 T/F H x New,7/13/95,Z E.N.
3 T/F H x New,7/13/95,AC E.N.
4
Conceptual M/
C H x x New,7/14/95,AB E.N.
5
Conceptual M/
C H x x New,7/14/95,AC E.N.
6
Conceptual M/
C H x 7/e: 17-18 Authors
7 M/C M x x New,7/16/95,C4 E.N.
8 M/C H x x New,7/16/95,D4 E.N.
9 M/C M x x 3/e: 18-33 Authors
10 M/C M x x New,7/16/95,E5 E.N.
11 M/C H x x 5/e: 18-30 Authors
12 M/C H x x 9eLD:CH17,Q11
Larry
Deppe
13 M/C M x x 10/24/2004 Single MC I3 E.N.
14 M/C M x x 10/25/2004 Single MC K3 E.N.
15 M/C E x x 10/27/2004 Single MC R3 E.N.
15A-
1
16-
20 Multipart M/C M x x 5/e: 18-16 to 20 Authors
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Appendix 15A, The Direct Method of Determining the Net Cash Provided by…
15A-
2
21-
24 Multipart M/C H x x New,7/18/95,J9 E.N.
15A-
3
25-
28 Multipart M/C H x x New,7/18/95,M7 E.N.
15A-
4
29-
31 Multipart M/C M x x 10/24/2004 Multi MC E3 E.N.
15A-
5
32-
34 Multipart M/C M x x 10/25/2004 Multi MC G3 E.N.
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6
35-
37 Multipart M/C E x x 10/26/2004 Multi MC J3 E.N.
38 Problem H x x 9eLD:CH17,P3
Larry
Deppe
39 Problem H x x New,7/18/95,O3 E.N.
40 Problem M x x 10/24/2004 Problem D3 E.N.
41 Problem M x x 10/25/2004 Problem H3 E.N.
42 Problem E x x 10/27/2004 Problem K3 E.N.
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Appendix 15A, The Direct Method of Determining the Net Cash Provided by…
True / False Questions
1. Under the direct method of determining the net cash provided by operating activities on the
statement of cash flows, an increase in account receivable would be deducted from sales
revenue to convert revenue to a cash basis.
True False
2. Under the direct method of determining the net cash provided by operating activities on the
statement of cash flows, an increase in accounts payable would be deducted from cost of
goods sold to convert cost of goods sold to a cash basis.
True False
3. Under the direct method of determining the net cash provided by operating activities on the
statement of cash flows, an increase in taxes payable would be added to income tax expense
to convert income tax expense to a cash basis.
True False
Multiple Choice Questions
4. During the year the balance in the accounts payable account decreased by $8,000. In order
to adjust the company's net income to a cash basis using the direct method on the statement of
cash flows, it would be necessary to:
A. deduct the $8,000 from the sales revenue reported on the income statement.
B. add the $8,000 to the sales revenue reported on the income statement.
C. deduct the $8,000 from the cost of goods sold reported on the income statement.
D. add the $8,000 to the cost of goods sold reported on the income statement.
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Appendix 15A, The Direct Method of Determining the Net Cash Provided by…