ACCN 2010 Quiz 12

ACCN 2010 Quiz 12 | Tulane University

Question 1

If accounts receivable have increased during the period

·         expenses on an accrual basis are greater than expenses on a cash basis.

·         revenues on an accrual basis are the same as revenues on a cash basis.

·         revenues on an accrual basis are less than revenues on a cash basis.

·         revenues on an accrual basis are greater than revenues on a cash basis.

 

Question 2

Which one of the following affects cash during a period?

·         Recording depreciation expense.

·         Payment of accounts payable.  

·         Write-off of an uncollectible account receivable.

·         Declaration of a cash dividend.

 

Question 3

Pharoah Company reported net income of $412000 for the year. During the year, accounts receivable increased by $30000, accounts payable decreased by $13000 and depreciation expense of $64000 was recorded. Net cash provided by operating activities for the year is

·         $391000.

·         $412000.

·         $433000.

·         $365000.

 

Question 4

Which of the following would be subtracted from net income using the indirect method?

·         Depreciation expense.

·         A decrease in prepaid expenses.

·         An increase in accounts payable.

·         An increase in accounts receivable.

 

Question 5

Vaughn Manufacturing reported a net loss of $15300 for the year ended December 31, 2022. During the year, accounts receivable decreased $7650, inventory increased $12240, accounts payable increased by $15300, and depreciation expense of $9180 was recorded. During 2022, operating activities

·         provided net cash of $4590.

·         used net cash of $10710.

·         provided net cash of $10710.

·         used net cash of $4590.

 

Question 6

Using the indirect method, which of the following adjustments to convert net income to net cash provided by operating activities is correct?

                               

 

Question 6

The net income reported on the income statement of Metlock, Inc. for the current year was $1224000. Depreciation recorded on plant assets was $231000. Accounts receivable and inventories increased by $65000 and $43000, respectively. Prepaid expenses and accounts payable decreased by $5000 and $59000, respectively. How much cash was provided by operating activities during the year?

·         $1242000.

·         $1350000.

·         $1293000.

·         $1617000.

 

 

Question 8

In preparing the statement of cash flows, determining the net increase or decrease in cash requires the use of

·         the current period's retained earnings statement.

·         the adjusted trial balance.

·         a comparative income statement.  

·         a comparative balance sheet.

 

 

Question 9

In addition to the three basic financial statements, which of the following is also a required financial statement?

·         The Cash Reconciliation.

·         Statement of Cash Flows.

·         The Cash Budget.

·         Statement of Cash Inflows and Outflows.

 

Question 11

The acquisition of land by issuing common stock is

·         a noncash transaction and would be reported in the body of a statement of cash flows.

·         a cash transaction and would be reported in the body of a statement of cash flows.

·         a noncash transaction that is not reported in the body of a statement of cash flows.

·         only reported if the statement of cash flows is prepared using the direct method.

 

Question 12

The payment of a cash dividend would be classified as a(n)

·         significant noncash activity.

·         financing activity.

·         investing activity.

·         operating activity.

 

Question 13

Nash's Trading Post, LLC issued common stock for proceeds of $413000 during 2022. The company paid dividends of $73000 and issued a long-term note payable for $278000 in exchange for equipment during the year. The company also purchased treasury stock that had a cost of $60000. The financing section of the statement of cash flows will report net cash inflows of

·         $618000.

·         $280000.

·         $340000.

·         $558000.

 

Question 14

Nash's Trading Post, LLC issued common stock for proceeds of $413000 during 2022. The company paid dividends of $73000 and issued a long-term note payable for $278000 in exchange for equipment during the year. The company also purchased treasury stock that had a cost of $60000. The financing section of the statement of cash flows will report net cash inflows of

·         $618000.

·         $280000.

·         $340000.

·         $558000.