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Which of the following would not appear on a cash flow statement prepared using the direct

Which of the following would not appear on a cash flow statement prepared using the direct method?

A) cash receipt from repayment of a loan

B) cash purchase of inventory

C) amortization expense

D) cash payments for operating expenses

63) Sustainability Enterprises uses the direct method when preparing its cash flow statement. Sustainability sold equipment with a book value of $22,000 at a gain of $5,000. The amount to be reported on the cash flow statement under "proceeds from the sale of capital assets" is:

A) $27,000

B) $22,000

C) $17,000

D) $5,000

64) Governance Corporation uses the direct method when preparing its cash flow statement. Governance sold equipment with a book value of $13,000 at a loss of $3,000. The amount to be reported on the cash flow statement under "proceeds from the sale of capital assets" is:

A) $16,000

B) $13,000

C) $10,000

D) $3,000

65) GRI Performance Enterprises uses the direct method when preparing its cash flow statement. GRI Performance sold equipment with a book value of $8,000 at a gain of $2,500. The amount to be reported on the cash flow statement in the operating activities section is:

A) $0

B)  ($2,500)

C)  $2,500

D) $10,500

66) SHE Management Corporation had accounts receivable of $105,000 and $120,000 on January 1, 2010, and December 31, 2010, respectively. Sales on account in 2010 were $310,000. The amount to be reported on the cash flow statement under the operating activities is:

A) ($15,000)

B)  $15,000

C) $325,000

D) $295,000

67) All of the following would be reported in the financing activities section under the direct method cash flow statement except:

A) issuing a stock dividend

B) paying a cash dividend

C) issuing common shares

D) repurchase of shares

68) In 2010 Phosphate Aurora Inc. reported an increase in Accounts Receivable of $7,500 and cash collections on account of $430,000. Sales on account for the period were:

A) $7,500

B) $437,500

C) $430,000

D) $422,500

69) Land Reclamation Industries began the year with $46,700 in Accounts Receivable and ended the year with $31,900 in Accounts Receivable. If sales for the year were $687,000, the cash collected from customers during the year amounted to:

A) $655,100

B) $672,200

C) $701,800

D) $733,700

70) If the cash collections from customers amounted to $634,800 and the Accounts Receivable account decreased $19,400 during the same period, sales for the period were:

A) $615,400

B) $634,800

C) $654,200

D) indeterminable from the information given

Dec 24 2019 Read more Less More

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