Author: Anonymous

Managers only use the cash flow statement to evaluate the net cash increase or decrease, and do not pay much attention to the details of cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities.

A financial statement providing information that helps users understand a company’s financial status, and which lists the types and amounts of assets, liabilities, and equity as of a specific date, is called a(n):

Both the direct and indirect methods yield the identical net cash flow amount provided or used by operating activities.

A noncash investing transaction should be disclosed in either a footnote or at the bottom of the statement of cash flows.

A customer’s promise to pay on credit is classified as an account payable by the seller.

A noncash investing transaction should be disclosed in either a footnote or at the bottom of the statement of cash flows.

Subic Bay Company reports depreciation expense of $40,000 for Year 2. Also, equipment costing $240,000 was sold for a $10,000 loss in Year 2. The following selected information is available for Subic Bay Company from its comparative balance sheet. Compute the cash received from the sale of the equipment.  At December 31 Year 2 Year 1 Equipment $ 510,000   $ 750,000   Accumulated Depreciation-Equipment   328,000     500,000  

A corporation reported cash of $14,000 and total assets of $178,300 on its balance sheet. Its common-size percent for cash equals:

Refer to the following selected financial information from Elvis Corp. Compute the company’s inventory turnover for Year 2.    Year 2   Year 1   Merchandise inventory 271,000   253,500   Cost of goods sold 486,400   433,100  

The purchase of long-term assets by issuing a note payable for the entire amount is reported on the statement of cash flows in the: