Answered: 30. The statement of financial position…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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30. The statement of financial position contributes to financial reporting by providing a basis for all of the following except *

b. evaluating the capital structure of the enterprise.

a. computing rates of return.

c. determining the increase in cash due to operations.

d. assessing the liquidity and financial flexibility of the enterprise

31.In a statement of cash flows, interest payments to lenders and other creditors should be classified as cash outflows for *

b. borrowing activities.

d. financing activities.

Option 1

c. lending activities.

a. operating activities.

32. In a statement of cash flows, proceeds from issuing equity instruments should be classified as cash inflows from *

d. financing activities.

a. lending activities.

b. operating activities.

c. investing activities.

33.On the statement of cash flows, which of the following items will affect both financing activities and operating activities? *

2 points

a. Issuance of equity securities.

b. Collection of loans to other entities.

c. Payment of dividends.

d. Redemption of debt.

34. Harding Corporation reports the following information: Net income R$1,000,000; Depreciation expense 280,000; Increase in accounts receivable 120,000. Harding should report cash provided by operating activities of *

b. R$840,000.

d. R$1,400,000

a. R$600,000.

c. R$1,160,000.

35. Lohmeyer Corporation reports: Cash provided by operating activities €250,000; Cash used by investing activities 110,000; Cash provided by financing activities 140,000; Beginning cash balance 120,000. What is Lohmeyer’s ending cash balance? *

a. €330,000.

c. €550,000.

d. €620,000.

b. €400,000.

36. In a statement of cash flows, payments to acquire debt instruments of other entities (other than cash equivalents) should be classified as cash outflows for *

c. financing activities.

a. operating activities.

d. lending activities.

b. investing activities.

37. A complete set of financial statements includes each of the following except *

d. All of these answers are included.

a. a statement of comprehensive income.

b. a statement of changes in equity.

c. notes.

38. Which of the following is considered cash? *

a. Certificates of deposit (CDs)

d. Postdated checks

c. Money market savings certificates

b. Money orders

39. All of the following may be included under the heading of “cash” except *d. savings account balance.

c. checking account balance.

b. money market funds.

a. currency.

40. In which account are post-dated checks received classified? *

d. Payables

a. Receivables

b. Prepaid expenses

c. Cash

41. In which account are postage stamps classified? *

c. Receivables

a. Cash

d. Inventory

b. Supplies

42. Which of the following is an appropriate reconciling item to the balance per bank in a bank reconciliation? *

c. Bank interest

d. Chargeback for NSF check

b. Deposit in transit

a. Bank service charge

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