Question 1.1. Miracle Company purchased treasury stock with a cost of $15,000 during 2012. During the year, the company paid dividends of $20,000 and issued bonds payable
Question 1.1. Miracle Company purchased treasury stock with a cost of $15,000 during 2012. During the year, the company paid dividends of $20,000 and issued bonds payable for proceeds of $866,000. Cash flows from financing activities for 2012 total
$846,000 net cash inflow.
$861,000 net cash inflow.
$866,000 net cash outflow.
$831,000 net cash inflow.
Question 2. 2. The statement of cash flows reports each of the following except
cash receipts from operating activities.
cash payments from investing activities.
the net change in cash.
Question 3. 3. The statement of cash flows
must be prepared on a daily basis.
summarizes the operating, financing, and investing activities of an entity.
is another name for the income statement.
is a special section of the income statement.
Question 4. 4. Each of the following are particularly interested in the statement of cash flows except
Question 5. 5. Each of the following is an example of a significant noncash activity except
conversion of bonds into common stock.
exchanges of plant assets.
issuance of debt to purchase assets.
Question 6. 6. In Garland Company, land decreased $140,000 because of a cash sale for $140,000, the equipment account increased $40,000 as a result of a cash purchase, and Bonds Payable increased $130,000 from issuance for cash at face value. The net cash provided by investing activities is
Question 7. 7. Indicate where the event purchased land and a building with a mortgage would appear, if at all, on the indirect statement of cash flows.
Operating activities section
Investing activities section
Financing activities section
Does not represent a cash flow
Question 8. 8. The statement of cash flows should help investors and creditors assess each of the following except the
entity's ability to generate future income.
entity's ability to pay dividends.
reasons for the difference between net income and net cash provided by operating activities.
cash investing and financing transactions during the period.
Question 9. 9. Generally, the most important category on the statement of cash flows is cash flows from
significant noncash activities.
Question 10. 10. The category that is generally considered to be the best measure of a company's ability to continue as a going concern is
cash flows from operating activities.
cash flows from investing activities.
cash flows from financing activities.
usually different from year to year.
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xxxxxxxx 1.1 Miracle Company xxxxxxxxx treasury xxxxx xxxx x cost xx xxxxxxx xxxxxx xxxxx xxxxxx xxx xxxxx xxx xxxxxxx paid dividends xx xxxxxxx and issued xxxxx xxxxxxx xxx xxxxxxxx of xxxxxxxxx Cash xxxxx xxxx xxxxxxxxx activities xxx 2012 total xxxxxxx x xx
$846,000 net xxxx inflow.
xxxxxxxx net xxxx xxxxxxx
xxxxxxxx xxx xxxx outflow.
$831,000 xxx cash inflow. solution: xxxxxx – 15000 – 20000 = xxxxxx
xxxxxxxx 2. 2. xxx statement xx cash xxxxx reports each of xxx following except (Points : xx
xxxx receipts from operating activities.
cash xxxxxxxx xxxx investing xxxxxxxxxxx
the xxx xxxxxx in cash.
xxxxxxxx 3. 3. The statement of xxxx flows (Points : xx
xxxx be prepared xx x xxxxx xxxxxx
summarizes xxx xxxxxxxxxx xxxxxxxxxx and investing xxxxxxxxxx xx an entity.
is another xxxx for the xxxxxx xxxxxxxxxx
xx a special section xx the xxxxxx statement.
xxxxxxxx 4. xx Each xx xxx following xxx particularly interested in the statement of cash flows xxxxxx (Points : xx
xxxxxxxx xx xx xxxx of the following xx an xxxxxxx of x significant noncash activity except xxxxxxx : 2)
xxxxxxxxxx xx xxxxx xxxx common xxxxxx
exchanges xx xxxxx xxxxxxx
issuance xx debt to xxxxxxxx assets.
xxxxxxxx 6. 6. In xxxxxxx Company, land xxxxxxxxx $140,000 xxxxxxx xx x xxxx
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