Screen Shot 2023-11-02 at 10

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.

more than one answers is correct ( )Which of the following should NOT be added to net income in calculating net cash flow from operating activities using the indirect method? A an increase in inventory B a decrease in accounts payable C a decrease in accounts receivable D preferred dividends declared and paid

How many of these items would be subtracted from net income to prepare the operating activities section of the statement of cash flows? a. Decrease in accounts receivable b. Issuance of common stock c. Increase in interest receivable d. Purchase of land e. Decrease in accounts payable f. Gain on the sale of equipment g. Depreciation expense h. Payment of dividends I. Decrease in utilities payable j. Increase in inventory Multiple Choice: A. 1 B. 2 C. 5 D. 4

Cash flow from operating activities is increased by:     a. depreciation and amortization     b. a decrease in accounts receivable     c. a decrease in inventory     d. an increase in accounts payable     e. all of these

CHOICES A. Only Statement I is correctB. Only Statement II is falseC. Statements II and III are falseD. Only Statement III is falseE. All statements are correct

24. Changes in balance sheet accounts are necessary fora.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.e.An increase in inventories.

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

Using the following answer keys, you are to identify in which activity each of the transactions is classified and its effect on cash flows. Cash Flow Classification.using the capital letter only: O.Operating Activity .Investing Activity F.Financing Activity Ol.Operating and Investing Activity • .Noncash Transaction Effect on Cash Flows.using the capital letter only: • .Increase D.Decrease N..No Effect Transaction Cash Flow Classification Effect on Cash Flows Increased accounts payable. Decreased inventory. Increased prepaid insurance. Earned a net income. Issued stock for cash. Retired long-term debt by issuing stock. Purchased a long-term investment with cash. Decreased interest payable. Decreased dividends receivable. Converted bonds to common stock.

Q1: MULTIPLE-CHOICE QUESTIONS - Cash Flow Statement 1. While calculating cash flow from operating activities which will be added : (A) Decrease in Bills Payable (B) Increase in Creditors -(C) Increase in Inventory (D) Increase in Trade Receivables

Using the indirect method for preparing the statement of cash flows, which of the following would not be included as an adjustment to net income? A decrease in Prepaid Insurance. An increase in Accounts Payable. An increase in Equipment. An increase in Accounts Receivable. None of the answer choices is correct. → Question 23 Which of the following is not an advantage of using the indirect method to prepare the statement of cash flows? The indirect method provides a link between net income and cash flows from operating activities by reconciling the two amounts. The indirect method typically takes less time to prepare than the direct method.. Accounting systems are better suited to generate information needed for the indirect method. The indirect method is more accurate than the direct method. None of the answer choices is correct.

Under the indirect method of determining net cash provided by operating activities on the statement of cash flows, which of the following would be subtracted from net income? Question 23 options:   A decrease in accounts receivable.   An increase in accrued liabilities.   A decrease in accounts payable.   An increase in dividend payments to stockholders

Balance Sheet 3-Dudes, Inc. Liabilities & Owners' Equity: Assets: 2021 2022 $22,000 $18,000 $26,000 $30,000 $28,000 $31,000 $76,000 $79,000 2022 $45,000 $220,000 $195,000Notes Pay $27,000 $292,000 $246,000Total CL 2021 Cash $21,000Accts Pay Accts. Rec. $30,000Other CL Inventories Total CA $600,000 $570,000LT Debt -$210,000 -$190,000Total Liab $390,000 $380,000 $285,000 $250,000 $361,000 $329,000 PP&E Depreciation Net PP&E $80,000 $80,000 Equity $626,000Ret Earn. Total equity Total Liab+EQ $241,000 $217,000 $321,000 $297,000 $682,000 $626,000 Total Assets $682,000 Simplified Income Statement - 2022 3-Dudes, Inc $1,200,000 -$470,000 $730,000 Revenue Cost of Goods Sold Gross Profit Operating Expenses (G&A): Earnings before interest and taxes (EBIT) Interest charges: Earnings before taxes (EBT) Taxes -$260,000 $470,000 -$28,000 $442,000 -$132,600 $309,400 Net Income

preparing an indirect method statement of cash flows, an increase in ending inventory over beginning inventory will result in an adjustment to reported net earnings because O a. cash was increased while cost of goods sold was decrease O b. cost of goods sold on an accrual basis is lower than on a cash basis. O c. inventory purchased during the period was less than inventory sold resulting in a net cash increase. d. O d. acquisition of inventory is an investment activity.

Which of the following should be deducted from net incomein calculating net cash flow from operating activities using the indirect method? Group of answer choices a loss on sale of long-term investments a increase in accounts payable a increase in accounts receivable  preferred dividends declared and paid

Using the indirect method, which of the following adjustments to convert net income to net cash provided by operating activities is correct?     Add to Net Income Deduct from Net Income Prepaid Expenses increase decrease Taxes Payable decrease increase Inventory decrease increase Accounts Receivable increase decrease

In preparing a cash flow statement which of the following is a cash inflow? A. Issue of DebenturesB. Redemption of DebenturesC. Increase in trade ReceivablesD. Decrease in trade payable