ch23 - CHAPTER 23 STATEMENT OF CASH FLOWS MULTIPLE CHOICE...

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Unformatted text preview: CHAPTER 23 STATEMENT OF CASH FLOWS MULTIPLE CHOICE Conceptual Answer No. Description c 1. Objective of a statement of cash flows. c 2. Purpose of the statement of cash flows. d 3. Definition of cash equivalents. b 4. The effect of an inventory increase on cash flows from operating activities. b 5. Cash flow effects of a stock dividend. c 6. Cash flow effects of major repairs on machinery. d 7. Cash flow effect of a short-term nontrade note payable. b 8. Effect of a change in dividends payable. d 9. Effect of cash dividend declaration on operating cash flows. b 10. Adjustment to income for inventory increase. c 11. Adjustment under the direct method and indirect method. c 12. Adjustment to cost of goods sold under the direct method. d 13. Adjustment for equity method investment income. a 14. Adjustment for an increase in accounts payable. a 15. Adjustment for a decrease in prepaid insurance. b 16. Direct method vs. indirect method. c 17. Direct method vs. indirect method. a 18. Reporting extraordinary transactions. d 19. Events not shown on statement of cash flows. MULTIPLE CHOICE Computational Answer No. Description b 20. Determine net income for period. a 21. Adjust net income for bad debt provision. c 22. Sale of fixed assets at a gain/cash flow effects. b 23. Analysis of plant asset account/cash flow presentation. c 24. Sale of equipment at a gain/cash flow effects. c 25. Determine depreciation expense for the year. b 26. Determine depreciation expense for the year. a 27. Calculate equipment purchased during the year. c 28. Calculate cost of equipment sold. a 29. Determine book value of equipment at end of year. b 30. Determine ending balance of accounts payable. c 31. Determine ending balance of retained earnings. d 32. Determine ending balance of capital stock. b 33. Determine the amount of a cash dividend. d 34. Reporting a stock dividend. c 35. Reporting insurance proceeds from a flood loss. Test Bank for Intermediate Accounting, Eleventh Edition MULTIPLE CHOICEComputational (cont.) Answer No. Description b 36. Reporting a flood loss. b 37. Determine net cash flow from investing activities. b 38. Determine net cash flow from financing activities. c 39. Determine net cash flow from operating activities. d 40. Determine net cash flow from investing activities. c 41. Determine net cash flow from financing activities. a 42. Determine cash flows from investing activities. d 43. Determine cash flows from financing activities. c 44. Determine net cash flow from operating activities. b 45. Determine net cash flow from operating activities. a 46. Determine net cash flow from operating activities. c 47. Determine net cash flow from investing activities....
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ch23 - CHAPTER 23 STATEMENT OF CASH FLOWS MULTIPLE CHOICE...

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