Question

In: Accounting

2, 3,5,6, 7 -Investing cash flows would include which of the following? Payment of cash dividends...

2, 3,5,6, 7

-Investing cash flows would include which of the following?

Payment of cash dividends to stockholders.

Cash sales to customers.

Purchase of a building with cash.

Purchase of office supplies with cash.

-Providing services to customers on account is considered a(n):

Financing cash flow.

Investing cash flow.

Not a cash flow.

Operating cash flow.

-Which of the following sales would typically be reported as a cash sale?

Sale in exchange for office supplies received.

Sale with credit card.

Sale on account.

Sale in exchange for equipment received.

-Compared to other methods of estimating uncollectible accounts, the aging of accounts receivables method tends to:

Result in the lowest net income.

Be more accurate.

Result in the highest net income.

Recognize bad debts earlier.

-Suppose a customer is unable to pay its account on time, so the company accepts a six-month interest-bearing note receivable to replace the customer's account receivable. What effect will accepting the note receivable have on the company's financial statements at the time of acceptance?

Total assets increase.

Total revenues increase.

Total assets decrease.

No change in total assets.

Solutions

Expert Solution


Related Solutions

In a statement of cash flows, which of the following would be classified as an investing...
In a statement of cash flows, which of the following would be classified as an investing activity? Multiple Choice The sale of the company's own common stock for cash. The sale of equipment. Interest paid to a lender. The issuance of bonds payable.
Q1 - Cash flows from investing activities, as part of the statement of cash flows, include:...
Q1 - Cash flows from investing activities, as part of the statement of cash flows, include: a. Collections from customers. b. Receipts from the sale of land. c. Issuing a company’s own stocks. d. Paying dividends. Q2 - The method that uses cash account to prepare cash flow from operating activities section of cash flow statement is: a. Direct Method b. Reciprocal Method c. Indirect Method d. Direct Write off Method Q3- A company’s net sales and average accounts receivables...
QUESTION 32 Cash decreases due to the payment of dividends would be found in which section...
QUESTION 32 Cash decreases due to the payment of dividends would be found in which section of the statement of cash flows? The financing activities section The investing activities section The operating activities section The accrual activities section 2 points    QUESTION 33 Which of the following would most likely be classified as a cost center? The automotive division of a large, decentralized corporation The Mt Pleasant branch of the Kohl's department store chain The Parks and Resorts business segment...
A firm is considering investing in a project with the following cash flows: Year 1 2...
A firm is considering investing in a project with the following cash flows: Year 1 2 3 4 5 6 7 8 Cash flow (OMR) 1,000 1,500 2,000 1,750 1,500 1,000 1,000 500 The initial investment is OMR 7,250. The firm has a required rate of return of 8 per cent. Calculate: The payback period;    The discounted payback; The net present value.   
18. You are considering investing in a small business that would generate the following cash flows:...
18. You are considering investing in a small business that would generate the following cash flows: year 1 = 60,000 (loss) year 2 = 75,000 (loss) year 3 = +$100,000 year 4 = +$150,000 The ownership position would cost you $1,800,000 up front but you think you can sell it for $2,550,000 after 4 years. Your investment hurdle rate for this kind of investment is 10%. Which of the following is accurate and appropriate when looking at this opportunity from...
In the statement of cash flows, in which section is the cash payment of salaries reported?...
In the statement of cash flows, in which section is the cash payment of salaries reported? A. Operating Activities B. Investing Activities C. Financing Activities D. Schedule of Noncash Transactions E. None of the above Using the direct method, if the cash receipts from customers are 5,000,000 and the cash paid for merchandise is 3,000,000 and the net cash flow from operating activities using the indirect method is 1,500,000, what is the amount of cash paid for operating activities? A....
Which of the following questions would not be answered by the statement of cash flows? a....
Which of the following questions would not be answered by the statement of cash flows? a. Where did the cash come from during the period? b. What was the cash used for during the period? c. Were all the cash expenditures of benefit to the company during the period? d. What was the change in the cash balance during the period?
Which of the following statements is correct? a. The statement of cash flows should include changes...
Which of the following statements is correct? a. The statement of cash flows should include changes in summary accounts, such as current assets and current liabilities, as well as changes in all individual accounts. b. If a firm sells equity to reduce long-term bonds, this is a capital financing transaction and does not appear on the statement of cash flows. However, if the firm sells equity in order to purchase assets, this transaction would be included in the statement of...
Which of the following statements best describes cash flows that would be shown on a cash...
Which of the following statements best describes cash flows that would be shown on a cash budget? a. The cash flows shown on the cash budget are the actual cash inflows and outflows and thus different from the firm’s free cash flows, because FCF reflects after-tax operating income and the investments required to maintain future operations. b. Depreciation is included in the estimate of cash flows (Cash flow = Net income + Depreciation); hence, depreciation is set forth on a...
7. Suppose your firm is considering investing in a project with the cash flows shown below,...
7. Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 12 percent, and that the maximum allowable payback and discounted payback statistic for the project are 2 and 3 years, respectively.   Time 0 1 2 3 4 5 6   Cash Flow -1,100 80 520 720 720 320 720 Use the discounted payback decision rule to evaluate this project; should it be...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT