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Devry ACCT 312 Week 7 Quiz Latest
Question 1. Which is reported as an operating activity in the statement of cash flows?
The payment of dividends
The sale of office equipment
The payment of interest on long-term notes
The issuance of a stock dividend
Question 2.Using the direct method, cash received from customers is calculated as sales
plus an increase in allowance for uncollectible accounts.
minus an increase in allowance for uncollectible accounts.
plus an increase in accounts receivable.
plus a decrease in accounts receivable.
Question 3.Which is not reported as an adjustment to net income when using the indirect method of computing net cash flows from operating activities?
Cash dividends paid
A change in accounts receivable
Depreciation
A change in a prepaid expense
Question 4. A loss on the sale of machinery should be reported in the statement of cash flows as
an adjustment to net income under the indirect method.
an operating activity under the direct method.
an investing activity cash outflow.
a noncash investing activity.
Question 5. Each year, our company prepares a reconciliation schedule that compares its income statement with its statement of cash flows on both the direct and indirect method bases. In its 2013 income statement, our company reported a $20,000 loss on the sale of equipment. In its reconciliation schedule, our company should
report a $20,000 cash outflow for the direct method.
show a $20,000 positive adjustment to net income under the indirect method.
show a $20,000 negative adjustment to net income under the indirect method.
None of the above
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Devry ACCT 312 Week 7 Quiz Latest
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