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32 Cards in this Set

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  • Back
Increases in accounts receivable, inventory and prepaid items must be _________ to (from) net income.
Decreases in accounts payable and accrued liabilities must be __________.
Gains on sales of plant assets should be __________.
Collection of principal on loans belongs in the _________ section.
Purchases of stock of other companies belong in the __________ section.
Collection of interest on loans belong in the _________ section.
Cash paid to purchase treasury stock belongs in the _________ section.
Cash dividends declared but NOT paid should be shown in the _________ section.
To prepare the statement of cash flows, we must have comparative ___________ and a(n) __________ statement.
Under the direct method we are not concerned with the expiration of prepaid items but rather with the ____________ of these items.
Under the indirect method, Accounts Receivable and its related allowance should be ________.
Significant noncash transactions should be disclosed in a _________.
Is a Gain on Sale of an assets Deducted from or Added to Net Income in order to compute cash flow from operations?
Is an Increase in Accounts Receivable Deducted from or Added to Net Income in order to compute cash flow from operations?
Is a Decrease in Prepaid Insurance Deducted from or Added to Net Income in order to compute cash flow from operations?
Is Depreciation Expense Deducted from or Added to Net Income in order to compute cash flow from operations?
Is an Increase in Accounts Payable Deducted from or Added to Net Income in order to compute cash flow from operations?
Is Uncollectible accounts expense Deducted from or Added to Net Income in order to compute cash flow from operations?
Is a Decrease in Wages Payable Deducted from or Added to Net Income in order to compute cash flow from operations?
Is Amortization of a bond premium Deducted from or Added to Net Income in order to compute cash flow from operations?
Is an Increase in Inventory Deducted from or Added to Net Income in order to compute cash flow from operations?
Is Amortization of a patent Deducted from or Added to Net Income in order to compute cash flow from operations?
Classify – A plant was sold for $550,000
Classify – A profit of 75,000 was reported
Classify – Long-term bonds were retired
Classify – Cash dividends of $420,000 were paid
400,000 shares of preferred stock were sold
A new high-tech robotics unit was purchased
A long-term note payabe was issued
A 50% interest in a company was purchased
A loss for the year was reported
Additional common stock was sold