FAR — Financial Accounting & Reporting — Quiz 71

Questions in this quiz (20)

1. Which section reports issuing bonds or repaying debt?

   • Operating activities
   • Operating activities
   • Investing activities
   • Investing activities
   • Financing activities
   • Financing activities
   • Asset activities
   • Asset activities

2. Which section reports issuing bonds or repaying debt?

   • Operating activities
   • Operating activities
   • Investing activities
   • Investing activities
   • Financing activities
   • Financing activities
   • Asset activities
   • Asset activities

3. Which of the following is a financing cash outflow?

   • Paying dividends
   • Paying dividends
   • Collecting accounts receivable
   • Collecting accounts receivable
   • Selling inventory
   • Selling inventory
   • Receiving interest income
   • Receiving interest income

4. Which of the following is a financing cash outflow?

   • Paying dividends
   • Paying dividends
   • Collecting accounts receivable
   • Collecting accounts receivable
   • Selling inventory
   • Selling inventory
   • Receiving interest income
   • Receiving interest income

5. Which of the following represents an investing cash inflow?

   • Sale of land
   • Sale of land
   • Cash received from customers
   • Cash received from customers
   • Issuing stock
   • Issuing stock
   • Paying wages
   • Paying wages

6. Which of the following represents an investing cash inflow?

   • Sale of land
   • Sale of land
   • Cash received from customers
   • Cash received from customers
   • Issuing stock
   • Issuing stock
   • Paying wages
   • Paying wages

7. Which of the following best describes the direct method of cash flows?

   • Adjusts net income for noncash items
   • Adjusts net income for noncash items
   • Reports operating cash receipts and payments
   • Reports operating cash receipts and payments
   • Reports financing activities only
   • Reports financing activities only
   • Reports changes in retained earnings
   • Reports changes in retained earnings

8. Which of the following best describes the direct method of cash flows?

   • Adjusts net income for noncash items
   • Adjusts net income for noncash items
   • Reports operating cash receipts and payments
   • Reports operating cash receipts and payments
   • Reports financing activities only
   • Reports financing activities only
   • Reports changes in retained earnings
   • Reports changes in retained earnings

9. Which of the following describes the indirect method of cash flows?

   • Lists all cash receipts
   • Lists all cash receipts
   • Adjusts net income to calculate operating cash flow
   • Adjusts net income to calculate operating cash flow
   • Reports investing activities only
   • Reports investing activities only
   • Reports financing activities only
   • Reports financing activities only

10. Which of the following describes the indirect method of cash flows?

    • Lists all cash receipts
    • Lists all cash receipts
    • Adjusts net income to calculate operating cash flow
    • Adjusts net income to calculate operating cash flow
    • Reports investing activities only
    • Reports investing activities only
    • Reports financing activities only
    • Reports financing activities only

11. Which noncash item is added back under the indirect method?

    • Depreciation expense
    • Depreciation expense
    • Rent expense
    • Rent expense
    • Salaries expense
    • Salaries expense
    • Utilities expense
    • Utilities expense

12. Which noncash item is added back under the indirect method?

    • Depreciation expense
    • Depreciation expense
    • Rent expense
    • Rent expense
    • Salaries expense
    • Salaries expense
    • Utilities expense
    • Utilities expense

13. Which change decreases operating cash flow?

    • Increase in accounts receivable
    • Increase in accounts receivable
    • Increase in accounts payable
    • Increase in accounts payable
    • Increase in accrued liabilities
    • Increase in accrued liabilities
    • Increase in unearned revenue
    • Increase in unearned revenue

14. Which change decreases operating cash flow?

    • Increase in accounts receivable
    • Increase in accounts receivable
    • Increase in accounts payable
    • Increase in accounts payable
    • Increase in accrued liabilities
    • Increase in accrued liabilities
    • Increase in unearned revenue
    • Increase in unearned revenue

15. Which change increases operating cash flow?

    • Increase in prepaid expenses
    • Increase in prepaid expenses
    • Increase in accounts payable
    • Increase in accounts payable
    • Increase in inventory
    • Increase in inventory
    • Increase in accounts receivable
    • Increase in accounts receivable

16. Which change increases operating cash flow?

    • Increase in prepaid expenses
    • Increase in prepaid expenses
    • Increase in accounts payable
    • Increase in accounts payable
    • Increase in inventory
    • Increase in inventory
    • Increase in accounts receivable
    • Increase in accounts receivable

17. Which of the following best describes operating cash flow?

    • Cash from core business operations
    • Cash from core business operations
    • Cash from issuing stock
    • Cash from issuing stock
    • Cash from borrowing money
    • Cash from borrowing money
    • Cash from selling equipment
    • Cash from selling equipment

18. Which of the following best describes operating cash flow?

    • Cash from core business operations
    • Cash from core business operations
    • Cash from issuing stock
    • Cash from issuing stock
    • Cash from borrowing money
    • Cash from borrowing money
    • Cash from selling equipment
    • Cash from selling equipment

19. Which financial statement explains changes in cash balances?

    • Balance sheet
    • Balance sheet
    • Income statement
    • Income statement
    • Statement of cash flows
    • Statement of cash flows
    • Statement of retained earnings
    • Statement of retained earnings

20. Which financial statement explains changes in cash balances?

    • Balance sheet
    • Balance sheet
    • Income statement
    • Income statement
    • Statement of cash flows
    • Statement of cash flows
    • Statement of retained earnings
    • Statement of retained earnings