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1、Chapter 16Statement of Cash FlowsCHAPTER 16STATEMENT OF CASH FLOWS401编号：时间：2021年x月x日书山有路勤为径，学海无涯苦作舟页码：第1页 共1页Chapter 16Statement of Cash FlowsTRUE/FALSE1.The statement of cash flows is not one of the basic financial statements.ANS:FDIF:1OBJ:012.Cash, as the term is used for the statement of cash flo
2、ws, could indicate either cash or cash equivalents.ANS:TDIF:1OBJ:013.The statement of cash flows is an optional financial statement.ANS:FDIF:1OBJ:014.The statement of cash flows shows the effects on cash of a companys operating, investing, and financing activities.ANS:TDIF:1OBJ:015.The statement of
3、cash flows reports a firms major sources of cash receipts and major uses of cash payments for a period.ANS:TDIF:1OBJ:016.Cash flows from operating activities, as part of the statement of cash flows, include cash transactions that enter into the determination of net income.ANS:TDIF:1OBJ:017.To arrive
4、 at cash flows from operations, it is necessary to convert the income statement from an accrual basis to the cash basis of accounting.ANS:TDIF:2OBJ:018.Cash flows from investing activities, as part of the statement of cash flows, include receipts from the sale of land.ANS:TDIF:2OBJ:019.Cash flows fr
5、om financing activities, as part of the statement of cash flows, include payments for dividends.ANS:TDIF:2OBJ:0110.Cash flows from investing activities, as part of the statement of cash flows, include payments for the purchase of treasury stock.ANS:FDIF:2OBJ:0111.Cash flows from investing activities
6、, as part of the statement of cash flows, include receipts from the issuance of bonds payable.ANS:FDIF:2OBJ:0112.There are two alternatives to reporting cash flows from operating activities in the statement of cash flows: (1) the direct method and (2) the indirect method.ANS:TDIF:1OBJ:0113.The direc
7、t method of preparing the operating activities section of the statement of cash flows reports major classes of gross cash receipts and gross cash payments.ANS:TDIF:1OBJ:0114.Under the direct method of reporting cash flows from operations, the major source of cash is cash received from customers.ANS:
8、TDIF:1OBJ:0115.The main disadvantage of the direct method of reporting cash flows from operating activities is that the necessary data are often costly to accumulate.ANS:TDIF:2OBJ:0116.A major disadvantage of the indirect method of reporting cash flows from operating activities is that the differenc
9、e between the net amount of cash flows from operating activities and net income is not emphasized.ANS:FDIF:2OBJ:0117.Cash outflows from financing activities include the payment of cash dividends, the acquisition of treasury stock, and the repayment of amounts borrowed.ANS:TDIF:2OBJ:0118.Cash flows f
10、rom investing activities, as part of the statement of cash flows, include payments for the acquisition of fixed assets.ANS:TDIF:2OBJ:0119.The acquisition of land in exchange for common stock is an example of noncash investing and financing activity.ANS:TDIF:2OBJ:0120.If a business issued bonds payab
11、le in exchange for land, the transaction would be reported in a separate schedule on the statement of cash flows.ANS:TDIF:2OBJ:0121.A cash flow per share amount should be reported on the statement of cash flows.ANS:FDIF:1OBJ:0122.Although there is no order in which the noncash balance sheet accounts
12、 must be analyzed in determining data for preparing the statement of cash flows by the indirect method, time can be saved and greater accuracy can be achieved by selecting the accounts in the reverse order in which they appear on the balance sheet.ANS:TDIF:1OBJ:0223.The 2002 edition of Accounting Tr
13、ends and Techniques reported that 90% of the companies surveyed used the indirect method to report changes in cash flows from operations.ANS:FDIF:2OBJ:0224.Rarely would the cash flows from operating activities, as reported on the statement of cash flows, be the same as the net income reported on the
14、 income statement.ANS:TDIF:2OBJ:0225.If land costing $75,000 was sold for $135,000, the amount reported in the investing activities section of the statement of cash flows would be $75,000.ANS:FDIF:2OBJ:0226.If land costing $150,000 was sold for $205,000, the $55,000 gain on the sale would be added t
15、o net income in converting the net income reported on the income statement to cash flows from operating activities for the statement of cash flows prepared by the indirect method.ANS:FDIF:2OBJ:0227.In preparing the cash flows from operating activities section of the statement of cash flows by the indirect method, the net decrease in inventories from the begin
