Accounting for Managers IIII

Accounting for Managers IIII - 1. The statement of cash...

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1. The statement of cash flows explains the difference between net income, as shown on the income statement, and the net cash flows generated from operations. True False Score: 1 of 1 2. The sale of land for cash would be classified as a cash inflow from an investing activity. True False Score: 1 of 1 3. The payment of interest on bonds payable is classified as a cash outflow from operating activities. True False Score: 1 of 1 4. Any item that appears on the income statement would be considered as either a cash inflow or cash outflow from operating activities. True False Score: 1 of 1 5. Under the indirect method, gains and losses from the sale of equipment used in operations would be included in the cash flows from operating activities section on the statement of cash flows. True False Score: 1 of 1 6. Cash provided by operations is generally equal to operating income. True False Score: 1 of 1 7. The cash basis measure of liquidity is the cash debt coverage ratio. True False
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Score: 0 of 1 8. Generally, the most important category on the statement of cash flows is cash flows from operating activities. investing activities. financing activities. significant noncash activities. Score: 1 of 1 9. Harden Corporation engaged in the following transaction. Assume that the Harden Corporation uses the indirect method to depict cash flows. Indicate where, if at all, collected accounts receivable would be classified on the statement of cash flows. Operating activities section Investing activities section Financing activities section Does not represent a cash flow Score: 1 of 1 10. Harden Corporation engaged in the following transaction. Assume that the Harden Corporation uses the indirect method to depict cash flows. Indicate where, if at all, purchased land and building with a mortgage would be classified on the statement of cash flows. Operating activities section Investing activities section Financing activities section Does not represent a cash flow Score: 0 of 1 11. Harden Corporation engaged in the following transaction. Assume that the Harden Corporation uses the indirect method to depict cash flows. Indicate where, if at all, purchased treasury stock with cash would be classified on the statement of cash flows. Operating activities section Investing activities section Financing activities section Does not represent a cash flow Score: 1 of 1 12. On the statement of cash flows, the cash flows from operating activities section
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would include receipts from the issuance of capital stock. receipts from the sale of investments. payments for the acquisition of investments. cash receipts from sales activities. Score: 0 of 1 13. Bruce Company issued common stock for proceeds of $186,000 during 2010. The company paid dividends of $33,000 and issued a long-term note payable for
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This note was uploaded on 01/05/2012 for the course BUSINESS 101 taught by Professor Krishnamurthysurysekar during the Fall '11 term at FIU.

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Accounting for Managers IIII - 1. The statement of cash...

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