Cash Flow Statement(Quick Test #1)

1. A company’s cash inflows and cash outflows are arranged by activities, which are presented on the statement of cash flows in the following order: __________ activities, __________ activities, and __________ activities.

2. The exchange of bonds for stock shall be reported as __________ information.

3. A corporation is required to disclose the amount of interest and income taxes that it had __________.

4. The statement of cash flows explains the change during the period in cash and cash __________.

5. The statement of cash flows replaced the __________ flow statement.

6. The reporting requirements for the statement of cash flows are contained in Accounting Standards Codification of the __________ __________ Standards Board.

7. The heading of the statement of cash flows specifies a __________.

8. Under the indirect method, an increase in accounts receivable will be __________ __________ net income in the operating activities section of the statement of cash flows.

9. Under the indirect method, a decrease in accounts payable will be __________ __________ net income in the operating activities section of the statement of cash flows.

10. Generally, an increase in the balances of __________ accounts will result in an increase of cash on the statement of cash flows.

11. Generally, a decrease in the balances of __________ accounts will result in an increase of cash on the statement of cash flows.

12. Under the indirect method, the gain on the sale of a plant asset will be __________ __________ net income in the operating activities section of the statement of cash flows.

13. Under the indirect method, depreciation expense will be __________ __________ net income in the operating activities section of the statement of cash flows.

14. Which of the following would be added to net income in the operating activities section of a statement of cash flows prepared using the indirect method?

15. Which of the following would be deducted from net income in the operating activities section of a statement of cash flows prepared using the indirect method?

16. The FASB recommends (but does not require) which method of preparing the statement of cash flows?

17. Generally, cash equivalents include only investments which had maturities of __________ months or less when acquired.

18. A corporation’s purchase of treasury stock will be reported as a __________ amount on the statement of cash flows.

19. The retirement of bonds payable will be reported as a __________ amount on the statement of cash flows.

20. If the operating activities section of the statement of cash flows begins with the enterprise’s net income, the statement is being prepared under the __________ method.

21. Under the indirect method, the current period’s amortization expense will appear as a __________ amount in the operating activities section of the statement of cash flows.

22. Reduction in the amount of Inventory.

23. Increase in the amount of Accounts Receivable.

24. Increase in the amount of Accounts Payable.

25. Decrease in the amount of Accrued Expenses.

26. Amount spent on capital expenditures.

27. The cash amount received from the sale of a plant asset.

28. The reported loss amount on the sale of a plant asset.

29. Decrease in the amount of Bonds Payable.

30. The total of this section is used to calculate free cash flow.

31. The exchange of bonds for stock.

32. Proceeds from issuing common stock.

33. Interest expense on a corporation’s debt.

34. Interest received from investments in bonds.

35. Remittance of payroll tax withholdings.

36. Purchase of a long-term investment.

37. Used to assess the quality of a company’s earnings.

38. Depreciation expense.

39. Cash dividends declared and paid.

40. Proceeds from the sale of a long-term investment.