The question that says “Which of the following represents the first step in preparing a statement of cash flows in the correct order?” is included in the LS Assignment Chapter 11. If you are the one who is currently trying to find the answer to the question and need help, you can answer it “ Combine operating, investing, and financing activities”.
As mentioned before, “Which of the following represents the first step in preparing a statement of cash flows in the correct order?” is included in the LS Assignment Chapter 11. In this chapter, there are a total of 24 questions. Some other 23 include:
- Question: Cash inflows and outflows involving stockholders and creditors are classified on the statement of cash flows as ___ activities.
Answer: Financing - Question: Which of the following cash transactions are classified as cash inflows from investing activities?
Answer: Sale of building sale of held to maturity investments sale of equipment - Question: Indicate whether each item is a cash inflow or a cash outflow from operating activities.
Answer: Cash inflow – sale of services, collection on account cash outflow – payment of salaries, payment on account - Question: Transactions reported on the statement of cash flows that do not increase or decrease cash, but that result in significant investing and financing activities are referred to as _ activities.
Answer: Noncash - Question: True or false: When presenting the operating activities section of the statement of cash flows, the direct method starts with net income and adjusts it by eliminating the effects of transactions that do not involve cash. The indirect method reports the total cash inflow or cash outflow from each main type of transaction.
Answer: False - Question: Match the cash flows with investing activities.
Answer: Cash inflow – sale of equipment and Cash outflow – purchase of investment - Question: Repayments of formal, long-term debt contracts are classified as ___ activities.
Answer: Financing - Question: Which of the following items are classified as cash inflows from operating activities on the statement of cash flows?
Answer: Receipt of interest and collection from customers - Question: Which of the following are cash outflows from financing activities?
Answer: Repay borrowing from bank and pay dividends - Question: Which of the following transactions would be classified as financing activities in the statement of cash flows?
Answer: Payment of cash dividends, repayment of long-term loan - Question: Salary expense is $50,000 for the period. The beginning balance in salaries payable is $5,000, and the ending balance is $3,000. What is the amount of salaries paid during the period?
Answer: 52,000 (5000-3000+50000=52000) - Question: Using information available on the income statement and changes in current assets and current liabilities we can derive cash flows from
Answer: Operating - Question: Colter corp. has the following information: What is the net cash flow from investing activities?
Answer: ($60,000) (10000-100000 30000=-60000 - Question: Which of the following transactions would be classified as financing activities in the statement of cash flows?
Answer: Sale of the company’s common stock, issuance of bonds, and repurchase of the company’s own common stock - Question: The direct method for preparing the statement of cash flows reports cash inflows and outflows from operations such as:
Answer: Cash received from customers, payments for inventory - Question: During the current period, Schmidt Corp. sold equipment for $1,000, purchases new equipment for $10,000, paid an accounts payable balance of $2,500, and sold an investment costing $2,000 for $2,800. Net cash from investing activities is (indicate the amount and whether it is a net inflow or outflow)
Answer: 6200 net outflow - Question: Which of the following are common financing activities involving the outflow of cash?
Answer: Purchasing the company’s own shares and payment of cash dividends - Question: Roberts Inc. sells common stock for $10 million and pays dividends of $1 million. Net cash flows from financing activities will be:
Answer: 9 million - Question: Which of the following transactions would be classified as financing activities in the statement of cash flows?
Answer: Repayment of a long-term loan and payment of cash dividends - Question: Ranier corp. has the following information: What is the net flow from investing activities?
Answer: 70,000 sale of building-purchase of land - Question: Carola Inc. issues common stock for $20 million and pays dividends of $2 million. Net cash flows from financing activities will be:
Answer: 18 million - Question: Diamond company’s land account decrease by 10 million. Cash received from sale of land
Answer: May be higher or lower than $10 million - Question: True or false: if a company chooses to prepare the operating section of the statement of cash flows using the direct method, it must also report using the indirect method.
Answer: True
Aside from the LS Assignment Chapter 11, the question “Which of the following represents the first step in preparing a statement of cash flows in the correct order?” is also included in the ACCT Chapter 11 (Extra credit and Concept videos). Upon getting the question, you can answer it with “Calculate the net cash flows from operating activities”.
Talking about the ACCT Chapter 11 (Extra credit and Concept videos), there are 81 more questions in addition to “Which of the following represents the first step in preparing a statement of cash flows in the correct order?”. The first one is ”___ activities include cash receipts and cash payments for transactions relating to revenue and expense activities.”. To be able to get it right, you can just answer it with “Operating”. The second one is “Cash flows from _____________ activities include both inflows and outflows of cash from the external funding of a business.” The answer to the question is “Financing”. The third one is “Sale of services for cash”. The answer to this question is “Cash inflow”. The fourth one is “Payment on account”. You can just answer “Cash outflow” as the answer to this question. If you want to know about the rest of the questions included in the test as well as the correct answers, it is better for you to visit Quizlet.
