A cash-flow statement is also known as a(n) _____ statement. A. taxable income B. net worth C. income and expense D. asset-and-liability | Homework.Study.com (2024)

Get access to this video and our entire Q&A library

• After net income has been determined, it is then transferred to: a. the statement of retained earnings. b. the statement of cash flows. c. the income statement. d. the balance sheet.
• Reports only revenues and expenses a) Income statement b) Balance sheet c) Statement of retained earnings d) Statement of cash flows
• On which financial statement should income tax expense be reported? a. Statement of Cash Flows b. Balance Sheet c. Statement of Retained Earnings d. Income Statement e. Income tax expense should not be reported.
• The statement of cash flows reports: a. assets, liabilities, and equity b. revenues, gains, expenses, and losses c. cash inflows and cash outflows for an accounting period d. equity, net income, and dividends e. changes in equity
• Under the cash method of tax accounting, income is generally recognized when _______. A. cash is received B. the liability arises C. there is net income to absorb the expense D. revenue is earned
• The purpose of the statement of cash flows is to provide information on: a. Profits. b. Cash inflows and outflows. c. Losses. d. Net worth. e. Capital adequacy.
• Match the following items with the appropriate financial statement: a. Income statement b. Balance sheet c. Retained earnings statement d. Statement of cash flows (1) Cash (2) Salary expense (3) Unearned revenue (4) Depreciation expense (5) Cap
• Formal presentation of the accounting equation a) Income statement b) Balance sheet c) Statement of retained earnings d) Statement of cash flows
• In the statement of cash flows, the amount of depreciation and amortization expense is added back to net income because: a) these expenses do not affect cash, but were subtracted in the determination of net income. b) these expenses affect investing activ
• Accumulated depreciation is reported ________. A. in the income statement as an expense B. in the balance sheet as a contra asset C. in the balance sheet as an asset D. in the statement of cash flows as an outflow of cash from operating activities
• A summary of the cash receipts and cash payments is called: a. Balance sheet b. Income statement c. Statement of cash flows d. Statement of retained earnings
• The amount of net income is transferred from [{Blank}] to [{Blank}]. A. the balance sheet; the income statement B. the income statement; the statement of owner's equity C. the balance sheet; the statement of cash flows D. the income statement; the stateme
• The 1st statement prepared a) Income statement b) Balance sheet c) Statement of retained earnings d) Statement of cash flows
• Capital expenditure is reported on the _____. A. income statement under operating expenses B. balance sheet under fixed assets C. statement of retained earnings under contributed capital D. Cash flow statement under cash flow from financing activities
• Which financial statement is prepared first? a. Balance sheet b. Income statement c. Retained earnings statement d. Statement of cash flows
• Net income flows from: a. the statement of cash flows to the income statement. b. the income statement to the balance sheet. c. the balance sheet to the statement of cash flows. d. the income statement to the statement of changes in shareholders' equity.
• How do you prepare statement of cash flows from a balance sheet and income statement with loss and gain in income statement?
• When preparing the statement of cash flows using the indirect method for determining net cash flows from operating activities, depreciation is added to net income because: A) It was deducted as an expense on the income statement, but does not require cas
• In which of the following financial statement(s) would you likely find the Retained Earnings account? a. Income statement b. Balance sheet c. Statement of stockholders' equity d. Statement of cash flows
• The portion of a corporation's net income retained in the business is called: a. income statement b. balance sheet c. statement of cash flows d. retained earnings
• In his discussion of Financial Statements, Taxes, and Cash Flow, Mr. Milken asks you if Net Income as it is computed on the income statement is cash flow. What do you say? A. No, because the average tax rate is relevant for most financial decisions. B. Y
• Describe the interrelationship between: (1) a balance sheet and an income statement (2) income statement and statement of cash flows (3) balance sheet and statement of cash flows
• 2nd statement prepared a) Income statement b) Balance sheet c) Statement of retained earnings d) Statement of cash flows
• The financial statement that shows revenue and expenses for a period of time in the: a. balance sheet. b. income statement. c. statement of owners' equity d. statement of cash flows.
• Government-wide financial statements include a: a. balance sheet, an income statement, and a statement of cash flows. b. statement of net assets, a statement of activities, and a statement of cash flows. c. statement of net assets and a statement of activ
• Gains on the cash sales of fixed assets: A.Are the excess of the book value over the cash proceeds. B.Are part of cash flows from operations. C.Are reported on a net of tax basis if material. D.Are the excess of the cash proceeds over the book value o
• Indicate in which of the following financial statement(s) you would likely find cash assets. a. Income statement b. Balance sheet c. Statement of stockholders' equity d. Statement of cash flows
• Indicate in which of the following financial statement(s) you would likely find non-cash assets. a. Income statement b. Balance sheet c. Statement of stockholders' equity d. Statement of cash flows
• On which financial statement should income tax expense be reported? a. Statement of cash flows b. Balance sheet c. Statement of retained earnings d. Income statement e. Statement of working capital
• On the statement of cash flows prepared by the indirect method, a $50,000 gain on the sale of investments would be: a. deducted from net income in converting the net income reported on the income statement to cash flows from operating activities. b. add
• Net capital expenditure should be recorded in which section of a cash flow statement? a. financing cash flow b. operating cash flow c. depreciation cash flow d. investing cash flow
• The primary purpose of the statement of cash flows is to: A. Provide info about the investing and financing activities during a period. B. Prove that revenues exceed expenses if there is a net income. C. Provide info about the cash receipts and cash paym
• Cash flow is very important and cash balances can be found on two of the financial statements the balance sheet and the cash flows statement. Does the cash flow statement provide better information about cash than the balance sheet? Why or why not?
• The Unearned Revenue account is shown in which statement? a. Income statement. b. Statement of cash flows. c. Balance sheet. d. Statement of stockholders' equity.
• Which financial statements are required for a proprietary fund? a. Statement of Revenues, Expenses, and Changes in Fund Balance, Statement of Net Position, and Statement of Cash Flows. b. Statement of Revenues, Expenses, and Changes in Fund Net Position
• The financial statement that reports the revenues and expenses for a period of time such as a year or a month is the: a. Balance Sheet b. Income Statement c. Statement of Cash Flows
• Discounted cash flow valuation is based upon the notion that the value of an asset is the present value of the expected cash flows on that asset, discounted at a rate that reflects the riskiness of those cash flows. Specify whether the following statement
• On a statement of cash flows, depreciation expense is: a. treated as a cash outflow in the computation of the net cash used in investing activities. b. treated as a cash inflow in the computation of the net cash used in investing activities. c. added to
• Which of the following is not a basic financial statement? a. Income statement b. Balance sheet c. Statement of cash flows d. Statement of retained earnings e. Revenue statement
• Indicate in which of the following financial statement(s) you would likely find the line item cash outflow for dividends. a. Income statement b. Balance sheet c. Statement of stockholders' equity d. Statement of cash flows
• Indicate in which of the following financial statement(s) you would likely find expenses. a. Income statement b. Balance sheet c. Statement of stockholders' equity d. Statement of cash flows
• Nominal accounts are NOT found on which of the following financial statements? A) Balance sheet B) Income statement C) Statement of cash flows D) Retained earnings statement
• A financial statement that reports accounting data at a specific date is the: a. balance sheet. b. retained earnings statement. c. income statement. d. statement of cash flows.
• To prepare a pro forma cash flow statement, you must forecast your: a. losses b. liabilities and assets c. revenues and operating expenses d. equity capital
• Which one of the following is the financial statement that summarizes a firm's revenue and expenses over a period of time? (a) Income statement (b) Balance sheet (c) Cash flow statement (d) Sources and uses statement (e) Market value statement.
• Indicate in which of the following financial statement(s) you would likely find the line item cash outflow for capital expenditures. a. Income statement b. Balance sheet c. Statement of stockholders' equity d. Statement of cash flows
• The statement of cash flows should NOT be used to evaluate an entity's ability to: a. pay dividends b. earn net income c. meet obligations d. generate future cash flows
• The basic financial statements include all of the following except: a) Balance Sheet. b) Income Statement. c) Statement of Retained Earnings. d) Statement of Cash Flows. e) Statement of Changes in Assets.
• Income tax was $361,437 for the year. The income tax payable was $31,000 and $41,788 at the beginning and end of the year. Cash payments for income tax reported on the statement of cash flows using the method is: a. $361,437 b. $434,225 c. $372,225 d.
• The dividends payable account belongs on which statement? a. statement of cash flows b. statement of retained earnings c. balance sheet d. income statement
• The dividends payable account belongs to which statement? A. Statement of cash flows B. Statement of retained earnings C. Balance sheet D. Income statement
• The statement of cash flows should not be used to evaluate an entity's ability to: a. earn net income. b. generate future cash flows. c. pay dividends. d. meet obligations.
• Bank overdrafts, if material, should be: a. reported as a deduction from the current asset section. b. reported as a deduction from cash. c. netted against cash and a net cash amount reported. d. reported as a current liability.
• For the following transaction, identify which financial statement(s) is/are impacted in the current period: Interest expense is calculated on outstanding debt. a. Balance Sheet b. Income Statement c. Cash Flow Statement
• How are the income statement, balance sheet, and cash flow statement interrelated?
• The most noteworthy item on the income statement is net income. The most noteworthy item on the cash flow statement is not net cash flow." Explain this comment and if you agree, what might be?
• Accounts receivable amounts to $215,000 for the beginning of the year and $245,000 for the end of the year. Income reported on the income statement for the year is $300,000. How much is the cash flow from operating activities on the cash flow statement u
• Ending retained earnings is $350,000. No dividends were issued or declared during the year. Accrual revenue is $400,000. Cash received from the accrual revenue was $250,000. Accrual expenses are $450,000. Cash paid related to the expenses was $245,000. W
• In a statement of cash flows (indirect method), what is deducted from net income to determine net cash flow from operating activities? a. Amortization of Premium on Bonds Payable, but not Depreciation Expense b. Depreciation Expense, but not Amortization
• A statement that reports inflows and outflows of cash during the accounting period in the categories of operations, investing, and financing, is called a(an): a. Income statement. b. Statement of retained earnings. c. Balance sheet. d. Statement of cash f
• Indicate in which of the following financial statement(s) you would likely find the line item cash inflow for stock issued. a. Income statement b. Balance sheet c. Statement of stockholders' equity d. Statement of cash flows
• This statement reports the net cash flows relating to operating, investing, and financing activities for a period of time. a) Income Statement b) Statement of Cash Flows c) Comparative Balance Sheet d) Unadjusted Trial Balance
• When a business purchases a truck with cash on hand, that transaction is reflected on the: a. balance sheet and cash flow statement b. cash flow statement c. income statement d. income statement, balance sheet, and cash flow statement e. balance sheet
• Net income for the year for Tanizaki, Inc. was $750,000, but the statement of cash flows reports that net cash provided by operating activities was $860,000. Tanizaki also reported capital expenditures of $75,000 and paid dividends in the amount of $30,00
• What financial statement would be most interesting to a creditor? a. retained earnings statement b. balance sheet c. income statement d. cash flow
• On a statement of cash flows prepared using the indirect method, a gain on the sale of plant assets would be: a. ignored since the gain did not generate any cash. b. reported in the investing activities section. c. deducted from net income in the operatin
• The statement of cash flows will not provide insight into: a. the exact proceeds of a future bond issue. b. why dividends were not increased. c. whether cash flow is greater than net income. d. how the retirement of debt was accomplished.
• Determine the financial statement on which supplies expense would appear. a. income statement b. balance sheet c. both the income statement and the balance sheet d. neither the income statement nor the balance sheet
• When a business purchases a truck with cash on hand, that transaction is reflected in the: a. Income statement. b. Balance sheet and cash flow statement. c. Cash flow statement. d. Balance sheet. e. Income statement, balance sheet, and cash flow statement
• The primary purpose of the statement of cash flows is to: a. provide information about the investing and financing activities during a period. b. prove that revenues exceed expenses if there is a net income. c. provide information about the cash receip
• Connecting link between the income statement and balance sheet a) Income statement b) Balance sheet c) Statement of retained earnings d) Statement of cash flows
• On which financial statement will you find financing cash flow? 1. None. 2. Income Statement. 3. Statement of Cash Flows. 4. Balance Sheet.
• Identify the financial statement/s where each of the following items appears. Use I for income statement, B for balance sheet, and E for statement of retained earnings. a. Accounts payable b. Cash c. Rent expense d. Office supplies e. Prepaid insurance f.
• Reports as of a specific date a) Income statement b) Balance sheet c) Statement of retained earnings d) Statement of cash flows
• In calculating cash flows from operating activities using the indirect method, a gain on the sale of equipment is a. added to net income. b. deducted from net income. c. ignored because it does not affect cash. d. not reported on a statement of cash f
• On a statement of retained earnings, the beginning capital is $40,000. Net income for the year is $11,000 and Cash Dividends paid for the year are $6,000, the ending capital amount would be: a. $40,000 b. $35,000 c. $45,000 d. $47,000
• Indicate in which of the following financial statement(s) you would likely find contributed capital. a. Income statement b. Balance sheet c. Statement of stockholders' equity d. Statement of cash flows
• Which financial statement reconciles net income with net cash flows from operating activities? A) Statement of retained earnings B) Statement of cash flows C) Income statement D) Balance sheet
• How are revenues and expenses reported on the income statement under (a) the cash basis of accounting and (b) the accrual basis of accounting?
• Format an income statement, balance sheet, and statement of cash flows for NCP for the period ending Dec 31, 2013. And Compute the following ratios: Net Profit Margin Quick ratio. QR = Cash + cash
• The net cash flow is equal to: (a) Income after taxes minus depreciation. (b) Income after taxes minus dividends. (c) Cash receipts minus cash payments. (d) Cash receipts minus cash payment minus depreciation.
• In a statement of cash flows (indirect method), which of the following are deducted from income to determine net cash flow from operating activities? a. Amortization of Premium on Bonds Payable, but not Depreciation Expense b. Depreciation Expense, but no
• Accounts receivable amounts to $215,000 for the beginning of the year and $245,000 for the end of the year. Income reported on the income statement for the year is $300,000. How much is the cash flow from operating activities on the cash flow statement us
• Which financial statement does Cash appear on? A. Income Statement B. Statement of Retained Earnings C. Balance Sheet
• The primary purpose of a statement of cash flows is to provide relevant information about: a. difference between net income and associated cash receipts and disbursem*nts. b. an entity's ability to generate future positive net cash flows. c. the cash rece
• Net income for the year for Tanizaki, Inc. was $740,390, but the statement of cash flows reports that net cash provided by operating activities was $845,990. Tanizaki also reported capital expenditure
• A business's cash receipts and cash payments for a specific period are reported on a(n): a. income statement b. balance sheet c. cash flow statement d. cash reconciliation statement
• Prestige Auto's records show net income of $30,000, depreciation expense of $10,000, and cash dividends paid of $5,000. Using the indirect method, determine the cash flow from operating activities on the cash flow statement.
• Normally the report prepared for a department is a/an: A. cash flow statement. B. statement of equity. C. income statement. D. balance sheet.
• Would cash paid for a building be reported on the statement of cash flows as an operating activity, an investing activity, or a financing activity on the statement of cash flows, or does it not appear at all?
• When an intangible asset is sold, the gain or loss is recognized: A. in Equity B. on the Income Statement C. in the Statement of Financial Position D. in the Statement of Cash Flows
• Calculate the cash flow generated by Cash Cow Corporation. Sales $400,000 COGS (120,000) Gross profit $280,000 Depreciation (40,000) Pretax income $240,000 Taxes at 30% (72,000) Net income $168,000
• How to put losses and gains in the income statement to the statement of cash flow?
• The statement of cash flows categorizes like transactions for optimal reporting. Required: Identify each item as a(n): - Operating activity-addition to net income (O+) or subtraction from net incom
• What are a balance sheet, an income statement, and cash flow?
• Identify the financial statement (Balance Sheet, Income Statement, Statement of Retained Earnings, and/or Statement of Cash Flow) in which decision-makers can find the following information. In some cases, more than one statement will report the needed da
• The benefits of a statement of cash flows are to A. determine ability to pay indebtedness and cash dividends. B. estimate future cash flows. C. evaluate asset management D. all of the above
• A firm had earnings after taxes of $50,000 in Depreciation charges were $28,000, and a $2,000 charge for amortization of a bond discount was incurred. What was the firm's accounting cash flow from operations during 2009?
• How is "depreciation expense" treated when developing the cash flow statement using the indirect method? a. It is added to net income when calculating cash flow from operating activities b. It is subtracted from net income when calculating cash flow fro