Question for Accountant !?

1.Land costing $88,000 was sold for $50,000 cash. The loss on the sale was reported on the income statement as other expense. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land? a.$50,000 b.$88,000 c.$138,000 d.$38,000 2.Baxter Company reported a net loss of $13,000 for the year ended December 31, 2010. During the year, accounts receivable decreased $5,000, merchandise inventory increased $8,000, accounts payable increased by $10,000, and depreciation expense of $4,000 was recorded. During 2010, operating activities a.provided net cash of $8,000. b.provided net cash of $2,000. c.used net cash of $8,000. d.used net cash of $2,000. 3. Concerning the Indirect Statement of Cash Flows, select the correct statement. a.The management of a company would mostly utilize the Indirect Statement of Cash Flows as a management tool since it starts with Net Income from the Income Statement. b.The management of a company would not normally distribute the Indirect Statement of Cash Flows as a statement within its annual reports because it would most likely confuse the average reader. c.The management of a company would most likely distribute the Indirect Statement of Cash Flows as a statement within its annual reports because it starts with Net Income and ends in the current cash balance which increases reader confidence in the report. d.The management of a company would most likely distribute the Indirect Statement of Cash Flows as a statement within its annual reports because it does not present any relation to the other statements of the report; therefore it is least likely to confuse the reader. 4.Accounts receivable arising from sales to customers amounted to $40,000 and $31,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $120,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is a.$120,000. b.$129,000. c.$151,000. d.$111,000. 5.Free cash flow is a.all cash in the bank b.cash from operations c.cash from financing, less cash used to purchase fixed assets to d.maintain productive capacity and cash used for dividends cash flow from operations, less cash used to purchase fixed assets to maintain productive capacity and cash used for dividends

13 months ago - 1 answers