Norris Company declared cash dividends of $60,000 during the year. Cash dividends payable were $20,000 at the beginning of the year and $25,000 at the end of the year. The amount of cash Norris Co. used for payment of dividends during the year was

·        Question 1

1 out of 1 points

	Cash flow per share is
	Selected Answer: a.  not required to be reported on any statement Answers: a.  not required to be reported on any statement b.  required to be reported on the income statement c.  required to be reported on the balance sheet d.  required to be reported on the statement of cash flows

·        Question 2

1 out of 1 points

	​Norris Company declared cash dividends of $60,000 during the year. Cash dividends payable were $20,000 at the beginning of the year and $25,000 at the end of the year. The amount of cash Norris Co. used for payment of dividends during the year was
	Selected Answer: c.  ​$55,000 Answers: a.  ​$80,000 b.  ​$65,000 c.  ​$55,000 d.  ​$105,000 Response Feedback: Rationale: Cash used for payment of dividends = Dividends payable at the beginning of the year + Dividends declared during the year – Dividends payable at the end of the year = $20,000 + $60,000 – $25,000 = $55,000​

·        Question 3

1 out of 1 points

	A ten-year bond was issued at par for $250,000 cash.  This transaction should be shown on a statement of cash flows under
	Selected Answer: a.  financing activities Answers: a.  financing activities b.  noncash investing and financing activities c.  investing activities d.  operating activities

·        Question 4

1 out of 1 points

	The following information is available from the current period financial statements: Net income $175,000 Depreciation expense 28,000 Increase in accounts receivable 16,000 Decrease in accounts payable 21,000 ​ The net cash flow from operating activities using the indirect method is
	Selected Answer: d.  $166,000 Answers: a.  $184,000 b.  $240,000 c.  $110,000 d.  $166,000 Response Feedback: Rationale: Cash flows from operating activities: ​ Net income ​ ​  $175,000 Adjustments to reconcile net income to net cash flow from operating activities: ​ Depreciation expense ​     28,000 Changes in current operating assets and ​ liabilities: ​ ​ ​ Increase in accounts receivable   (16,000) Decrease in accounts payable   (21,000) Net cash flow from operating activities  $166,000 ​

·        Question 5

1 out of 1 points

	Accounts receivable from sales transactions were $51,000 at the beginning of the year and $64,000 at the end of the year.  Net income reported on the income statement for the year was $105,000.  Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method is
	Selected Answer: a.  $92,000 Answers: a.  $92,000 b.  $105,000 c.  $169,000 d.  $118,000 Response Feedback: Rationale: Cash flows from operating activities = Net income – Increase in accounts receivable = $105,000 – ($64,000 – $51,000) = $92,000​

·        Question 6

1 out of 1 points

	The statement of cash flows is not useful for
	Selected Answer: d.  calculating the net worth of a company Answers: a.  planning future investing and financing activities b.  determining a company’s ability to pay its debts c.  determining a company’s ability to pay dividends d.  calculating the net worth of a company

·        Question 7

1 out of 1 points

	On the statement of cash flows, a $7,500 gain on the sale of fixed assets would be
	Selected Answer: c. deducted from net income in converting the net income reported on the income statement to cash flows from operating activities Answers: a. added to dividends declared in converting the dividends declared to the cash flows from financing activities related to dividends b.  added to net income in converting the net income reported on the income statement to cash flows from operating activities c. deducted from net income in converting the net income reported on the income statement to cash flows from operating activities d. deducted from dividends declared in converting the dividends declared to the cash flows from financing activities related to dividends

·        Question 8

1 out of 1 points

	Which of the following should be added to net income in calculating net cash flow from operating activities using the indirect method?
	Selected Answer: d.  depreciation expense Answers: a.  an increase in inventory b.  dividends declared and paid c.  a gain on the sale of equipment d.  depreciation expense

·        Question 9

1 out of 1 points

	Which of the following would not be found in a schedule of noncash investing and financing activities, reported at the end of a statement of cash flows?
	Selected Answer: d.  purchase of treasury stock Answers: a.  capital stock issued to acquire fixed assets b.  equipment acquired in exchange for a note payable c.  bonds payable exchanged for capital stock d.  purchase of treasury stock

·        Question 10

1 out of 1 points

	​When using the Spreadsheet (work sheet) method to analyze noncash accounts, it is best to start with
	Selected Answer: d.  ​retained earnings Answers: a.  ​cash b.  ​revenue c.  ​net income d.  ​retained earnings

·        Question 11

1 out of 1 points

	Which of the following increases cash?
	Selected Answer: b.  borrowing money by issuing a six-month note Answers: a.  the declaration of a cash dividend b.  borrowing money by issuing a six-month note c.  depreciation expense d.  acquisition of treasury stock

·        Question 12

1 out of 1 points

	A company purchases equipment for $32,000 cash.  This transaction should be shown on the statement of cash flows under
	Selected Answer: b.  investing activities Answers: a.  operating activities b.  investing activities c.  noncash investing and financing activities d.  financing activities

·        Question 13

1 out of 1 points

	Cash dividends of $50,000 were declared during the year.  Cash dividends payable were $10,000 and $5,000 at the beginning and end of the year, respectively.  The amount of cash for the payment of dividends during the year is
	Selected Answer: b.  $55,000 Answers: a.  $60,000 b.  $55,000 c.  $50,000 d.  $65,000 Response Feedback: Rationale: Cash payment of dividends = Dividends payable at the beginning of the year + Dividends declared during the year – Dividends payable at the end of the year = $10,000 + $50,000 – $5,000 = $55,000​​

·        Question 14

1 out of 1 points

	On the statement of cash flows, the cash flows from financing activities section would include all of the following except
	Selected Answer: c.  payments of interest on bonds payable Answers: a.  payments for dividends b.  receipts from the sale of bonds payable c.  payments of interest on bonds payable d.  payments for purchase of treasury stock

·        Question 15

1 out of 1 points

	Which of the following can be found on the statement of cash flows?
	Selected Answer: d.  cash flows from operating activities Answers: a.  total changes in stockholders' equity b.  changes in retained earnings c.  total assets d.  cash flows from operating activities