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[jolie95]

1. Under IFRS, the cash flow statement can be prepared using
A) the direct method only.
B) the indirect method only.
C) either the direct or indirect method.
D) the T-account method only.


2. Which of the following adjustments to convert net income to net cash provided by operating activities is not added to net income?
A) Gain on Sale of Equipment.
B) Depreciation Expense.
C) Patent Amortization Expense.
D) Depletion Expense.

5. Which of the following is not typically a characteristic experienced by a company during the growth phase of the corporate life cycle?
A) Cash from operations on the statements of cash flows will be less than net income on the income statement.
B) Collections on accounts receivable will lag behind sales.
C) Cash from investing is positive.
D) Cash from financing is positive.


7. If a loss of $62,000 is incurred in selling (for cash) office equipment having a book value of $200,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is
A) $138,000.
B) $200,000.
C) $262,000.
D) $62,000.

9. The cost of goods sold during the year was $275,000. Merchandise inventory decreased by $10,000 during the year and accounts payable decreased by $5,000 during the year. Using the direct method of reporting cash flows from operating activities, cash payments for merchandise total
A) $280,000.
B) $270,000.
C) $260,000.
D) $290,000.

11. Wilma’s Vegetable Market had the following transactions during 2012:
Issued $25,000 of par value common stock for cash.
Recorded and paid wages expense of $10,000.
Acquired land by issuing common stock of par value $50,000.
Declared and paid a cash dividend of $1,000.
Sold a long-term investment (cost $3,000) for cash of $3,000.
Recorded cash sales of $20,000.
Bought inventory for cash of $2,000.
Acquired an investment in IBM stock for cash of $6,000.
Converted bonds payable to common stock in the amount of $10,000.
Repaid a 6 year note payable in the amount of $11,000.
What is the net cash provided by financing activities?
A) $13,000.
B) $25,000.
C) $14,000.
D) $9,000.

15. If a gain of $27,000 is incurred in selling (for cash) office equipment having a book value of $180,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is
A) $153,000.
B) $180,000.
C) $207,000.
D) $27,000.

17. Sam’s Pest Control Products has the following information available.

What is the current cash debt coverage ratio?
A) 1.333 times.
B) .600 times.
C) .833 times.
D) .369 times.

[doran]

The answer is that you aren't qualified to be an accountant.