Typical contractual situations that are disclosed in the notes to the balance sheet include all of the following except
During 2012 the DLD Company had a net income of $55,000. In addition, selected accounts showed the following changes:
Accounts Receivable $ 3,000 increase
Accounts Payable 1,000 increase
Building 4,000 decrease
Depreciation Expense 1,500 increase
Bonds Payable 8,000 increase
What was the amount of cash provided by operating activities?
The statement of cash flows provides answers to all of the following questions except
what was the cash used for during the period?
what was the change in the cash balance during the period?
where did the cash come from during the period?
what is the impact of inflation on the cash balance at the end of the year?
In a statement of cash flows, receipts from sales of property, plant, and equipment and other productive assets should generally be classified as cash inflows from
Net cash provided by operating activities divided by average total liabilities equals the
cash debt coverage ratio.
current cash debt coverage ratio.
free cash flow.
It is mandatory that the essential provisions of which of the following be clearly stated in the notes to the financial statements?
Stock option plans
All of these.
Harding Corporation reports the following information:
Net income $ 450,000
Depreciation expense 140,000
Increase in accounts receivable 60,000
Harding should report cash provided by operating activities of
Preparing the statement of cash flows involves all of the following except determining the
change in cash during the period.
cash provided by operations.
cash collections from customers during the period.
cash provided by or used in investing and financing activities.
Which of the following is not a method of disclosing pertinent information?
Cross reference and contra items
All of these are methods of disclosing pertinent information.
Significant accounting policies may not be
omitted from financial-statement disclosure.
selected from existing acceptable alternatives.
unusual or innovative in application.
selected on the basis of judgment.
A general description of the depreciation methods applicable to major classes of depreci-able assets
is not essential to a fair presentation of financial position.
is needed in financial reporting when company policy differs from income tax policy.
should be included in corporate financial statements or notes thereto.
is not a current practice in financial reporting.
In preparing a statement of cash flows, which of the following transactions would be considered an investing activity?
Issuance of bonds payable at a discount
Sale of merchandise on credit
Sale of equipment at book value
Declaration of a cash dividend
In a statement of cash flows, interest payments to lenders and other creditors should be classified as cash outflows for
The statement of cash flows helps meet one of the objectives of financial reporting, which is to assess all of the following except the
uncertainty of future cash flows.
source of future cash flows.
timing of future cash flows.
amount of future cash flows.
Packard Corporation reports the following information:
Net cash provided by operating activities $ 235,000
Average current liabilities 150,000
Average long-term liabilities 100,000
Dividends declared 60,000
Capital expenditures 110,000
Payments of debt 35,000
Packard’s free cash flow is