3. Based on your analysis from Part One, which of the following transactions and events would result in a deteriorationin Operating Cash Flow to Sales in year 2022? A. selling goods on credit at the normal mark-up B. recognising theimpairment of plant & equipment C. an adjustment for accrued interest revenue D. A and B only E. A and C only F. Band C only G. All of the above

Step 1: Step 2: Step 3: Step 4:

Answered: 3. Based on your analysis from Part…

Cornerstones of Financial Accounting

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Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 17CE: Analyzing Changes in Balance Sheet Accounts Refer to the information for Peterson Inc. above....

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Q1: MULTIPLE-CHOICE QUESTIONS - Cash Flow Statement 1. While calculating cash flow from operating activities which will be added : (A) Decrease in Bills Payable (B) Increase in Creditors -(C) Increase in Inventory (D) Increase in Trade Receivables
Which of the following situations required us to make an downward adjustment to net income (subtracting) when computing operating cash flows? (check all that apply) A. there was a depreciation expense B. some property was sold for a gain on the net book value C. some recognized expenses were for COGS to suppliers paid for on account D. there were some recognized revenues in accounts receivable
Which of the following will be reflected in the "Cash flows from operating activities" of a Statement of Cash Flows? O A. Adjustment for depreciation O B. Purchase of equipment O C. Increase or decrease in loans O D. Purchase of inventory Previous page nttps://mancosaconnectacza/mad/ouiz/attempt.php?attempt=446654&cmid=D181433&page=18%3D Tume bere to search II
11In a cash flow statement, which one of the following would appear as an outflow of cash? Select one: a. An increase in debtors during the year. b. An increase creditor during the year. c. Depreciation charges on fixed assets. d. Loss on sale of a fixed asset. 12A credit balance on accruals account indicates? Select one: a. a liability and an expense owing. b. an asset and a prepayment of income. c. an asset and an accrual of income. d. a liability and an expense prepaid. 6ABC paid XYZ rent in advance for one year. By recording this payment ABC will reflect: Select one: a. An increase in assets and liabilities. b. An increase in assets and stockholder's equity. c. An increase in assets and decrease in liabilities. d. No change in total assets. 8Which of the following expenses will not be analyzed to administrative expenses in a published profit and loss account for a company? Select one: a. Bank charges and interest. b. Office expenses. c. General expenses. d. Managing Director…
What information can best be elicited from a receivable ratio? A. company performance with current debt collection B. credit extension effect on cash sales C. likelihood of future customer bankruptcy filings D. an increase in future credit sales to current customers
Analyzing Changes in Balance Sheet Accounts Refer to the information for Peterson Inc. above. Required: Indicate whether each of the changes above produces a cash increase, a cash decrease, or is a noncash activity.
Indicate whether each of the following would be added to or deducted from net income in determining net cash flow from operating activities by the indirect method:a. Increase in merchandise inventoryb. Increase in prepaid expensesc. Depreciation of fixed assetsd. Gain on disposal of fixed assetse. Amortization of patentf. Increase in notes payable due in 120 days to vendorsg. Increase in accounts payableh. Decrease in wages payablei. Decrease in notes receivable due in 60 days from customersj. Decrease in accounts receivablek. Loss on retirement of long-term debt
Match the words to the definitions. Solvency Accounts Receivable Balance Sheet Noncurrent Assets Income Statement Retained Earnings Noncurrent Liabilities. Liquidity Current Assets Cash Flow Statement ✓ [Choose ] A forecast of the amount and timing of future cash inflows and outflows over some period of time. A summary of the revenues and expenses of a business over a given period of time. When net worth is greater than zero, or assets are greater than liabilities on the balance sheet. The ability to meet the day-to-day cash needs of the firm. Profits that are not paid out in dividends but are reinvested in the firm itself. Summarizes a firm's financial position at a given point in time and lists the firm's assets, liabilities, and net worth. Debts that others owe the business, usually arising from previous credit sales. Something the firms owns or uses that will not turn into cash within the next accounting period. Either cash or an items that will become cash in the next accounting…
24. Changes in balance sheet accounts are necessary fora.A typical ratio analysis.b.Pro forma balance sheet construction.c.Statement of cash flows construction.d.Profit and loss analysis.e.Pro forma income statement construction. 25. Which of the following would be classified as a use of cash?a.An increase in accounts payable.b.A decrease in marketable securities.c.A decrease in accounts receivable.d.An increase in retained earnings.e.An increase in inventories.
6.On a statement of financial affairs, a company's liabilities should be valued at Select one: a.the present value of future cash flows. b.the amount expected to be paid if the company could honor its debts. c.net realizable value. d.the amount required for settlement. e.replacement cost.
7. A cash flow statement prepared in accordance with IAS 7 opens with the calculation of cash flows from operating activities from the net profit before taxation. Which of the following lists of items consists only of items that would be added to net profit before taxation in that calculation? a. Increase in trade payables, decrease in trade receivables, profit on sale of non-current assets. b. Loss on sale of non-current assets, depreciation, increase in trade receivables. c. Decrease in trade receivables, increase in trade payables, loss on sale of non-current assets. d. Decrease in inventories, depreciation, profit on sale of non-current assets.
Indicate whether each of the following would be added to or deducted from net income in determining net cash flow from operating activities by the indirect method: a. Increase in prepaid expenses b. Amortization of patents c. Increase in salaries payable d. Gain on sale of fixed assets e. Decrease in accounts receivable f. Increase in notes receivable due in 60 days g. Amortization of discount on bonds payable h. Decrease in merchandise inventory i. Depreciation of fixed assets j. Loss on retirement of long-term debt k. Decrease in accounts payable l. Increase in notes payable due in 30 days m. Increase in income taxes payable

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