FIN 461 QUESTIONS AND ANSWERS SURE A+
✔✔Identify how the item would be classified on the statement of cash flows:
Accounts payable
a. Cash accounts.
b. Operating accounts.
c. Financing accounts.
d. Investing accounts. - ✔✔b
✔✔Identify how the item would be classified on the statement of cash flows:
Certificates of deposit
a. Cash accounts.
b. Operating accounts.
c. Financing accounts.
d. Investing accounts. - ✔✔a
✔✔Identify how the item would be classified on the statement of cash flows:
Inventory
a. Cash accounts.
b. Operating accounts.
c. Financing accounts.
d. Investing accounts. - ✔✔b
✔✔Indicate whether the following items will be added (A) or subtracted (S) from net
income to obtain cash flow from operating activities.
An increase in accounts payable - ✔✔A
, ✔✔Indicate whether the following items will be added (A) or subtracted (S) from net
income to obtain cash flow from operating activities.
A decrease in inventory - ✔✔A
✔✔Indicate whether the following items will be added (A) or subtracted (S) from net
income to obtain cash flow from operating activities.
A gain from an asset sale - ✔✔S
✔✔Indicate whether the following items will be added (A) or subtracted (S) from net
income to obtain cash flow from operating activities.
A decrease in an accrued liability - ✔✔S
✔✔Indicate whether the following items will be added (A) or subtracted (S) from net
income to obtain cash flow from operating activities.
An increase in accounts receivable - ✔✔S
✔✔Indicate whether the following items will be added (A) or subtracted (S) from net
income to obtain cash flow from operating activities.
Depreciation - ✔✔A
✔✔Indicate whether the following items will be added (A) or subtracted (S) from net
income to obtain cash flow from operating activities.
A decrease in interest receivable - ✔✔A
✔✔Indicate whether the following items will be added (A) or subtracted (S) from net
income to obtain cash flow from operating activities.
A decrease in deferred revenue - ✔✔S
✔✔Indicate whether the following items will be added (A) or subtracted (S) from net
income to obtain cash flow from operating activities.
An increase in deferred tax liabilities - ✔✔A
✔✔The following information is available for Casey Company:
Net income $200
Increase in plant and equip. $ 90
✔✔Identify how the item would be classified on the statement of cash flows:
Accounts payable
a. Cash accounts.
b. Operating accounts.
c. Financing accounts.
d. Investing accounts. - ✔✔b
✔✔Identify how the item would be classified on the statement of cash flows:
Certificates of deposit
a. Cash accounts.
b. Operating accounts.
c. Financing accounts.
d. Investing accounts. - ✔✔a
✔✔Identify how the item would be classified on the statement of cash flows:
Inventory
a. Cash accounts.
b. Operating accounts.
c. Financing accounts.
d. Investing accounts. - ✔✔b
✔✔Indicate whether the following items will be added (A) or subtracted (S) from net
income to obtain cash flow from operating activities.
An increase in accounts payable - ✔✔A
, ✔✔Indicate whether the following items will be added (A) or subtracted (S) from net
income to obtain cash flow from operating activities.
A decrease in inventory - ✔✔A
✔✔Indicate whether the following items will be added (A) or subtracted (S) from net
income to obtain cash flow from operating activities.
A gain from an asset sale - ✔✔S
✔✔Indicate whether the following items will be added (A) or subtracted (S) from net
income to obtain cash flow from operating activities.
A decrease in an accrued liability - ✔✔S
✔✔Indicate whether the following items will be added (A) or subtracted (S) from net
income to obtain cash flow from operating activities.
An increase in accounts receivable - ✔✔S
✔✔Indicate whether the following items will be added (A) or subtracted (S) from net
income to obtain cash flow from operating activities.
Depreciation - ✔✔A
✔✔Indicate whether the following items will be added (A) or subtracted (S) from net
income to obtain cash flow from operating activities.
A decrease in interest receivable - ✔✔A
✔✔Indicate whether the following items will be added (A) or subtracted (S) from net
income to obtain cash flow from operating activities.
A decrease in deferred revenue - ✔✔S
✔✔Indicate whether the following items will be added (A) or subtracted (S) from net
income to obtain cash flow from operating activities.
An increase in deferred tax liabilities - ✔✔A
✔✔The following information is available for Casey Company:
Net income $200
Increase in plant and equip. $ 90
