24. Changes in balance sheet accounts are necessary for a.A typical ratio analysis. b.Pro forma balance sheet construction. c.Statement of cash flows construction. d.Profit and loss analysis. e.Pro forma income statement construction. 25. Which of the following would be classified as a use of cash? a.An increase in accounts payable. b.A decrease in marketable securities. c.A decrease in accounts receivable. d.An increase in retained earnings

24. Changes in balance sheet accounts are necessary for a.A typical ratio analysis. b.Pro forma balance sheet construction. c.Statement of cash flows construction. d.Profit and loss analysis. e.Pro forma income statement construction. 25. Which of the following would be classified as a use of cash? a.An increase in accounts payable. b.A decrease in marketable securities. c.A decrease in accounts receivable. d.An increase in retained earnings

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter6: Statement Of Cash Flows

Section: Chapter Questions

Problem 8Q

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Which of the following is a cash inflow? a. an increase in dividend payment b. a decrease in accrued liabilities c. a decrease in accounts receivable d. a decrease in accounts payable
Which of the following would be classified as a use of cash? a. An increase in depreciation. b. A decrease in accounts receivable. c. A decrease in accruals. d. Both decrease in accounts receivable & decrease in accruals e. All of these
Which of the following is a cash outflow? Group of answer choices a. a new issue of bonds b. a decrease in accounts receivable c. an increase in plant d. an increase in accounts payable
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Develop brief answers to each of the following questions: 1. Why does a decrease in receivable turnover create the need for cash from operating activities? 2. Why would ratiosthat include one balance sheet account and one income statement account, such as receivable turnover or return on assets, be qu estionable if they came from quarterly or other interim financial reports?
Which of the following should be added to net income in calculating net cash flow from operating activities using the indirect method? a.a decrease in accounts payable b.an increase in inventory c.preferred dividends declared and paid d.a decrease in accounts receivable
Which of the following should be added to net income in calculating net cash flow from operating activities using the INDIRECT method? A. A decrease in accounts payable. B. A decrease in accounts receivable. C. Preferred dividends declared and paid. D. An increase in inventory.
Which of the following will be reflected as a cash inflow in the statement of cash flows of an entity? A) Decrease in non-current loan B) Increase in inventory C) Decrease in accounts receivable D) Decrease in accounts payable
Indicate whether each item should be added to or subtracted from net income to arrive at the net cash flow from operating activities. a. Increase in inventory b. Amortization of discount on investment in bonds c. Decrease in accounts payable d. Amortization of discount on bonds payable e. Increase in salaries payable f. Increase in prepaid expenses g. Subsidiary loss under the equity method h. Gain on disposal of equipment i. Decrease in accounts receivable j. Increase in deferred tax liability
Which one of the following is an advantage of the factoring of debtor accounts? Select one: a. The income of debtor administration is transferred to the factor. b. The turnover of non-current assets is increased. c. Liquidity ratios improve. d. More credit is available for other purposes.
Which of the following usually is least important as ameasure of short-term liquidity?a. Quick ratio.b. Debt ratio.c. Current ratio.d. Cash flows from operating activities.