SB Net income Qu. 64 Use the information above to answer the... $17,500. $18,500
ID: 2502614 • Letter: S
Question
SB Net income
Qu. 64 Use the information above to answer the...
$17,500. $18,500. $21,500. $23,300.Which of the following statements regarding the calculation of cash flows from operating activities under the direct method is true? When the direct method is used, each revenue and expense account on the income statement is individually examined to calculate the cash flows from operating activities. Noncash revenues and expenses must be included in cash flows from operating activities when preparing a statement of cash flows using the direct method. Depreciation is reported as a cash inflow in the cash flows from operating activities when the direct method is used. A loss on the sale of a long-term asset is subtracted in the cash flows from operating activities when the direct method is used.
When the indirect method is used, details from which of the following balance sheet accounts are used in calculating both operating and financing cash flows? Bonds payable. Taxes payable. Retained earnings. Contributed capital.
Which of the following journal entries would have an effect on cash from operating activities? Recording bad debts. Recording depreciation. Recording loss on sale of investment. Recording cash paid for interest on long-term note payable.
SB Net income
referencesQu. 64 Use the information above to answer the...
Use the information above to answer the following question. The company would report net cash provided by (used in) financing activities of: $(2,500) $2,000 $5,000 $6,000 referencesMC Qu. 65 Use the information above to answer the... Use the information above to answer the following question. The company would report net cash provided by (used in) investing activities of: $(1,000) $(2,000) $5,000 $7,000
Which of the following statements regarding calculation of cash flows from operating activities under the indirect method is true? When the indirect method is used, changes in current liabilities are subtracted while changes in current assets are added to convert net income to net cash flow from operating activities. When the indirect method is used, depreciation expense is added to net income as a step in the process of calculating net cash flow from operating activities. When the indirect method is used, gains on the sale of property, plant and equipment are added to convert net income to net cash flow from operating activities. When the indirect method is used, changes in long-term liabilities are subtracted to convert net income to net cash flow from operating activities. The company would report net cash provided by operating activities of: Which of the following statements regarding the calculation of cash flows from operating activities under the direct method is true? When the indirect method is used, details from which of the following balance sheet accounts are used in calculating both operating and financing cash flows? Which of the following journal entries would have an effect on cash from operating activities?
Explanation / Answer
1] The company would report net cash provided by operating activities of:
ANSWER :- $23,300. [20000+3000-1000+400+900]
2]
Which of the following statements regarding the calculation of cash flows from operating activities under the direct method is true?
ANSWER:- When the direct method is used, each revenue and expense account on the income statement is individually examined to calculate the cash flows from operating activities.
3] When the indirect method is used, details from which of the following balance sheet accounts are used in calculating both operating and financing cash flows?
ANSWER:- RETAINED EARNINGS
4] Which of the following journal entries would have an effect on cash from operating activities?
ANSWER:- Recording cash paid for interest on long-term note payable.
5] Qu. 64 Use the information above to answer the...
Use the information above to answer the following question. The company would report net cash provided by (used in) financing activities of:
ANSWER:- $2,000 [-2000+5000-1000]
6] MC Qu. 65 Use the information above to answer the...
Use the information above to answer the following question. The company would report net cash provided by (used in) investing activities of:
ANSWER:-
$(1,000) [3000-4000]
7] Which of the following statements regarding calculation of cash flows from operating activities under the indirect method is true?
ANSWER:- When the indirect method is used, depreciation expense is added to net income as a step in the process of calculating net cash flow from operating activities.
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