ACCT 2010 EXAM 5 UNT Questions and Correct Answers.

The Statement of cash flows is designated for all of the following purposes except - Answer to list all revenues and expenses The Statement of cash flows does not report - Answer revenues and expenses for the current year On the statement of cash flows, increase and decreases in the long-term assets resulting from cash transactions are reported as - Answer investing activities Which of the three types of activities reported on the statement of cash flows is the most important to evaluate a company's long-term survival? - Answer Operating Activities Cash received from the issuance of common stock is reported on a statement of cash flows under - Answer financing activities On the statement of cash flows, which of the following items is classified as as financing activity - Answer Borrowing cash by singing a long- term note On the statement of cash flows, which of the following items is classified as an investing activity - Answer Collecting cash on a long-term loan When using the indirect method of preparing the statement of cash flows, the starting point to determine net cash provided by operating activities is - Answer net income In the current year, Tesla company sold land for $80,000 cash, purchased a delivery van for $25,000, and issued common stock for $100,000 cash. The net cash provided by investing activities is? - Answer $55,000 ( Sale of land - purchase of delivery van) Which of the following transactions does not affect cash during a period? - Answer write-off of an uncollectible account If the indirect method is used to calculate net cash provided by operating activities, a decrease in accounts receivable is - Answer added to net income