AC202Exam2AAnswers[1]

AC202Exam2AAnswers[1] - Exam2A Key 1. The reporting of net...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Exam2A Key 1. The reporting of net cash provided or used by operating activities that lists the major items of operating cash receipts, such as receipts from customers, and subtracts the major items of operating cash disbursements, such as cash paid for merchandise, is referred to as the: A Direct method of reporting net cash provided or used by operating activities. b. Cash basis of accounting. c. Classified statement of cash flows. d. Indirect method of reporting net cash provided or used by operating activities. e . Net method of reporting cash flows from operating activities. Difficulty: Easy Learning Objective: P1 Wild - Chapter 16 #83 2. The direct method of reporting operating cash flows: A Is recommended but not required by the FASB. b. Must be used by all companies. c. Is used by most companies. d. Is considered supplementary disclosure. e . Is not recommended by the FASB, but is commonly used. Difficulty: Medium Learning Objective: P1 Wild - Chapter 16 #87 3. A company reported that its bonds with a par value of $50,000 and a carrying value of $57,000 are retired for $60,000 cash, resulting in a loss of $3,000. The amount to be reported under cash flows from financing activities is: a. $ (3,000). B
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 6

AC202Exam2AAnswers[1] - Exam2A Key 1. The reporting of net...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online