acct1bexam1sample - Name: _ Class: _ Date: _ ID: A ACCT1B -...

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Name: ________________________ Class: ___________________ Date: __________ ID: A 1 ACCT1B - Managerial Accounting: Sample Exam 1 Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. Which of the following concepts of cash is not appropriate to use in preparing the statement of cash flows? a. cash b. cash and money market funds c. cash and cash equivalents d. cash and U.S. treasury bonds ____ 2. On the statement of cash flows, the cash flows from operating activities section would include: a. receipts from the issuance of capital stock b. receipts from the sale of investments c. payments for the acquisition of investments d. cash receipts from sales activities ____ 3. Cash paid to purchase long-term investments would be reported in the statement of cash flows in: a. the cash flows from operating activities section b. the cash flows from financing activities section c. the cash flows from investing activities section d. a separate schedule ____ 4. A statement of cash flows would not disclose the effects of which of the following transactions? a. stock dividends declared b. bonds payable exchanged for capital stock c. purchase of treasury stock d. capital stock issued to acquire fixed assets ____ 5. Which of the following represents an inflow of cash and therefore would be reported on the statement of cash flows? a. appropriation of retained earnings b. acquisition of treasury stock c. declaration of stock dividends d. issuance of long-term debt ____ 6. Cash paid for preferred stock dividends should be shown on the statement of cash flows under: a. investing activities b. financing activities c. noncash investing and financing activities d. operating activities ____ 7. A company purchases equipment for $29,000 cash. This transaction should be shown on the statement of cash flows under: a. investing activities b. financing activities c. noncash investing and financing activities d. operating activities
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Name: ________________________ ID: A 2 ____ 8. Depreciation on factory equipment would be reported in the statement of cash flows prepared by the indirect method in: a. the cash flows from financing activities section b. the cash flows from investing activities section c. a separate schedule d. the cash flows from operating activities section ____ 9. Which of the following should be deducted from net income in calculating net cash flow from operating activities using the indirect method? a. depreciation expense b. amortization of premium on bonds payable c. a loss on the sale of equipment d. dividends declared and paid ____ 10. Which of the following below increases cash? a. depreciation expense b. acquisition of treasury stock c. borrowing money by issuing a six-month note d. the declaration of a cash dividend ____ 11. Which one of the following below should be added to net income in calculating net cash flow from operating activities using the indirect method? a.
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acct1bexam1sample - Name: _ Class: _ Date: _ ID: A ACCT1B -...

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