Chapter 23 Quiz

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Chapter 23 overview

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Chapter 23 Quiz


Chapter 23 QuizVersión en línea Chapter 23 overview por Mykael Burgess 1 What are financing activities? a This classification of cash flows includes revenues and expenses from daily business operations. b This classification of cash flows includes changes in long-term liabilities and stockholders’ equity. c This classification of cash flows includes the purchase and sale of long-term assets like equipment and buildings. d This classification of cash flows includes non-cash transactions such as depreciation and amortization. 2 What is net income? a The Statement of Cash Flows helps explain why this figure from the income statement may differ from actual cash generated by operations. b The total cash received from customers during a period. c The difference between a company’s assets and liabilities. d The amount of cash left after investing and financing activities are completed. 3 What is the indirect method? a A method that calculates cash flows by listing all cash receipts and cash payments from operations. b A method that records only investing and financing cash transactions without considering operating activities. c A method that prepares financial statements based solely on accrual accounting without adjustments. d When preparing the Statement of Cash Flows, this method adjusts net income for non-cash items and changes in working capital accounts. 4 What are financing activities? (Choose Multiple answers) Choose one or more answers a Operating b Investing c Financing d Budgeting 5 What are comparative balance sheets? a A statement showing only the company’s revenues and expenses for a single period. b One of the three primary sources of information for preparing a statement of cash flows is this type of financial statement comparing two periods. c A report summarizing cash inflows and outflows from investing activities only. d A schedule listing all non-cash transactions for a single accounting period. 6 What is the change in cash? a The total revenue earned during the period. b The amount of long-term investments purchased or sold. c The company’s net income from operations. d The first step in preparing a statement of cash flows is to determine this. 7 What is because depreciation reduces net income but does not reduce cash? a Depreciation is added back to net income when calculating cash flow from operations because it reduces net income but does not reduce cash. b Depreciation is a cash expense that increases net income c Depreciation represents cash paid out for new equipment. d Depreciation is only included in financing activities, not operating activities. 8 The company issues 1,000 shares of common stock at $50 per share, receiving $50,000 cash. Classify the activity and total cash flow for the transaction. a Investing activities, $1,000 b Financing activities, $50,000 c Investing activities, $50,000 d Financing activities, $1,000

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Chapter 23 Quiz

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Chapter 23 QuizVersión en línea

por Mykael Burgess

What are financing activities?

What is net income?

What is the indirect method?

What are financing activities? (Choose Multiple answers)

Choose one or more answers

What are comparative balance sheets?

What is the change in cash?

What is because depreciation reduces net income but does not reduce cash?

The company issues 1,000 shares of common stock at $50 per share, receiving $50,000 cash. Classify the activity and total cash flow for the transaction.