Flashcard Set Preview
Side ASide B
Which of the following does not represent an outflow of cash and therefore would not be reported on the statement of cash flows as a use of cash?
discarding an asset that had been fully depreciated
Which of the following represents an inflow of cash and therefore would be reported on the statement of cash flows?
Issuance of long-term debt
A ten-year bond was issued at par for $250,000 cash. This transaction should be shown on a statement of cash flows under
Cash paid for preferred stock dividends should be shown on the statement of cash flows under
The statement of cash flows may be used by management to
assess the liquidiy of the business
Financing activities involve?
Which one of the following below would not be classified as an operating activity?
payment of dividends
On the statement of cash flows, the cash flows from financing activities section would include
receipts from the issuance of capital stock
Which of the floowing should be deducted from net income in calculating net cash flow from operating activities using the indirect method?
a decrease in accounts payable
In calculating cash flows form opearting activities using the indirect method, a gain on the sale of equipment is
deducted from net income
The statement of cash flows is not one of the basic financial statements.
Cash flows from investing activities, as part of the statement of cash flows, include receipts from the issuance of bonds payable
What is the primary criterion for the preparation of managerial accounting reports?
Meet the manager needs
Which of the following statements is false?
There is no overlap between financial and managerial accounting.
In most business organization, the chief management accountant is called the:
The controller's staff often consists of several management accountants.All of the following would most likely be ont eh controller's staff EXCEPT:
investmetns and shareholder relations managers
What term is used to describe the process of directing operations to achieve the organization's goals and plans?
Which of the following is the principle reason for preparing managerial accounting reports?
Usefulness to management