Financial Accounting Ch 14 SCF
An increase in accounts payable from the previous to current reporting period would indicate - A
portion of expense were accrued and should not be included in the statement of cash flows
Which of the following does not accurately discuss the direct method of preparation? - Will
include operating activities which did not affect the cash account
All of the following are examples of investing activities except - The company pays dividends to
shareholders
Which of the following best describes operating activities on the statement of cash flows? - Those
cash flows associated with core business activities such as those reported on the income statement
Although both the statement of cash flows and the income statement report on operating activities, why
is net income from operations different from net cash flow from operations? - Because the
income statement is prepared using accrual accounting and the statement of cash flows reports only
transactions that affect the cash account
Which of the following results are not indicative of sustainability per the results of the statement of cash
flows? - The majority of the company's cash inflows are a result of cash loans.
Which of the following accurately discusses the indirect method of preparation? - Starts with net
income from the income statement, then adjusts by non-cash transactions
An increase in receivables from the previous to the current period would indicate - That
customers have made payments toward their balances, increasing cash inflows from operating activities
Which of the following questions will the statement of cash flows not answer for users? - How
much money does the business owe creditors?
An increase in accounts payable from the previous to current reporting period would indicate - A
portion of expense were accrued and should not be included in the statement of cash flows
Which of the following does not accurately discuss the direct method of preparation? - Will
include operating activities which did not affect the cash account
All of the following are examples of investing activities except - The company pays dividends to
shareholders
Which of the following best describes operating activities on the statement of cash flows? - Those
cash flows associated with core business activities such as those reported on the income statement
Although both the statement of cash flows and the income statement report on operating activities, why
is net income from operations different from net cash flow from operations? - Because the
income statement is prepared using accrual accounting and the statement of cash flows reports only
transactions that affect the cash account
Which of the following results are not indicative of sustainability per the results of the statement of cash
flows? - The majority of the company's cash inflows are a result of cash loans.
Which of the following accurately discusses the indirect method of preparation? - Starts with net
income from the income statement, then adjusts by non-cash transactions
An increase in receivables from the previous to the current period would indicate - That
customers have made payments toward their balances, increasing cash inflows from operating activities
Which of the following questions will the statement of cash flows not answer for users? - How
much money does the business owe creditors?
