QUESTION 1

1. A Statement of Cash Flows is generated to show:

a. How profits were generated during the period.

b. The revenues the company has earned during the period.

c. The inflow and outflow of cash during the period.

d. The expenses the company incurred during the period.

1 points

QUESTION 2

1. Smithson Corp. had the following selected balance sheet changes for the past year:

Assets Increase (Decrease)

Cash $47,000

Accounts Receivable $10,000

Inventory $15,000

Prepaid Expenses ($7,000)

Accumulated Depreciation $11,000

Liabilities Increase (Decrease)

Accounts Payable $20,000

Wages Payable($12,000)

Taxes Payable $9,000

The company's net income during the year was $35,000. What is the net cash provided by operating activities during the year on the statement of cash flows using the indirect method?

a. $25,000

b. $45,000

c. $92,000

d. $10,000

4 points

QUESTION 3

1.

The beginning and ending balances of long-term debt are $64,000, and $35,200, respectively, and cash payments for long-term debt during the year were $34,100. How much new long-term debt was issued during the year?

3. 3. a. New long-term debt issued during the year was $62,000

b. New long-term debt issued during the year was $28,800

c. New long-term debt issued during the year was $5,300

d. New long-term debt issued during the year was $1,100

2 points

QUESTION 4

1. A company sold equipment with a book value of $10,000 at a gain of $2,500. How much can be reported in the investing activities section of the statement of cash flows as cash received from sale of equipment?

a. The cash received from sale of equipment is $2,500

b. The cash received from sale of equipment is $10,000

c. The cash received from sale of equipment is $7,500

d. The cash received from sale of equipment is $12,500

QUESTION 1

A Statement of Cash Flows is generated to show:

a.

How profits were generated during the period.

b.

The revenues the company has earned during the period.

c.

The inflow and outflow of cash during the period.

d.

The expenses the company incurred during the period.

1 points

QUESTION 2

Smithson Corp. had the following selected balance sheet changes for the past year:

Assets Increase (Decrease)

Cash $47,000

Accounts Receivable $10,000

Inventory $15,000

Prepaid Expenses ($7,000)

Accumulated Depreciation $11,000

Liabilities Increase (Decrease)

Accounts Payable $20,000

Wages Payable($12,000)

Taxes Payable $9,000

The company's net income during the year was $35,000. What is the net cash provided by operating activities during the year on the statement of cash flows using the indirect method?

a.

$25,000

b.

$45,000

c.

$92,000

d.

$10,000

4 points

QUESTION 3

The beginning and ending balances of long-term debt are $64,000, and $35,200, respectively, and cash payments for long-term debt during the year were $34,100. How much new long-term debt was issued during the year?

a.

New long-term debt issued during the year was $62,000

b.

New long-term debt issued during the year was $28,800

c.

New long-term debt issued during the year was $5,300

d.

New long-term debt issued during the year was $1,100

2 points

QUESTION 4

A company sold equipment with a book value of $10,000 at a gain of $2,500. How much can be reported in the investing activities section of the statement of cash flows as cash received from sale of equipment?

a.

The cash received from sale of equipment is $2,500

b.

The cash received from sale of equipment is $10,000

c.

The cash received from sale of equipment is $7,500

d.

The cash received from sale of equipment is $12,500