{"id":23263,"date":"2022-01-06T07:51:01","date_gmt":"2022-01-06T07:51:01","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/question-1-which-of-the-following-adjustments-to-convert-net-income\/"},"modified":"2022-01-06T07:51:01","modified_gmt":"2022-01-06T07:51:01","slug":"question-1-which-of-the-following-adjustments-to-convert-net-income","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/question-1-which-of-the-following-adjustments-to-convert-net-income\/","title":{"rendered":"Question 1 which of the following adjustments to convert net income"},"content":{"rendered":"
\n

Question 1 \u00a0<\/p>\n

Which of the following adjustments to convert net income to net cash provided by operating activities is incorrect?<\/p>\n

\u00a0<\/p>\n

\u00a0Add to Net IncomeDeduct from Net Income<\/p>\n

\u00a0<\/p>\n

Inventorydecreaseincrease\u00a0<\/p>\n

Accounts Payableincreasedecrease\u00a0<\/p>\n

Accounts Receivabledecreaseincrease\u00a0<\/p>\n

Prepaid Expensesincreasedecrease<\/p>\n

\u00a0<\/p>\n

Question 2 \u00a0<\/p>\n

Which of the following transactions does not affect cash during a period?<\/p>\n

\u00a0<\/p>\n

Collection of an accounts receivable\u00a0<\/p>\n

Sale of treasury stock\u00a0<\/p>\n

Exercise of the call option on bonds payable\u00a0<\/p>\n

Write-off of an uncollectible account<\/p>\n

\u00a0<\/p>\n

Question 3 \u00a0<\/p>\n

Indicate where the event purchased land and a building with a mortgage would appear, if at all, on the indirect statement of cash flows.<\/p>\n

\u00a0<\/p>\n

Investing activities section\u00a0<\/p>\n

Financing activities section\u00a0<\/p>\n

Does not represent a cash flow\u00a0<\/p>\n

Operating activities section<\/p>\n

\u00a0<\/p>\n

Question 4 \u00a0<\/p>\n

The statement of cash flows<\/p>\n

\u00a0<\/p>\n

is used to assess an entity’s ability to pay dividends and meet obligations.\u00a0<\/p>\n

reflects earnings per share figures on a cash basis and on an accrual basis in the body of the statement.\u00a0<\/p>\n

is prepared instead of an income statement under generally accepted accounting principles.\u00a0<\/p>\n

is prepared from comparative income statements.<\/p>\n

\u00a0<\/p>\n

Question 5 \u00a0<\/p>\n

The cash effects of transactions that create revenues and expenses are<\/p>\n

\u00a0<\/p>\n

processing activities.\u00a0<\/p>\n

investing activities.\u00a0<\/p>\n

financing activities.\u00a0<\/p>\n

operating activities<\/p>\n

\u00a0<\/p>\n

Question 6 \u00a0<\/p>\n

In Garland Company, land decreased $140,000 because of a cash sale for $140,000, the equipment account increased $40,000 as a result of a cash purchase, and Bonds Payable increased $130,000 from issuance for cash at face value. The net cash provided by investing activities is<\/p>\n

\u00a0<\/p>\n

$230,000.\u00a0<\/p>\n

$140,000.\u00a0<\/p>\n

$100,000.\u00a0<\/p>\n

$110,000<\/p>\n

\u00a0<\/p>\n

Question 7 \u00a0<\/p>\n

If accounts receivable have increased during the period,<\/p>\n

\u00a0<\/p>\n

revenues on an accrual basis are less than revenues on a cash basis.\u00a0<\/p>\n

revenues on an accrual basis are greater than revenues on a cash basis.\u00a0<\/p>\n

revenues on an accrual basis are the same as revenues on a cash basis.\u00a0<\/p>\n

expenses on an accrual basis are greater than expenses on a cash basis<\/p>\n

\u00a0<\/p>\n

Question 8 \u00a0<\/p>\n

The following data are available for Quarter Company.<\/p>\n

Increase in accounts payable$120,000<\/p>\n

Increase in bonds payable400,000<\/p>\n

Sale of investments150,000<\/p>\n

Issuance of common stock180,000<\/p>\n

Payment of cash dividends90,000<\/p>\n

\u00a0<\/p>\n

Net cash provided by financing activities is:<\/p>\n

\u00a0<\/p>\n

$280,000.\u00a0<\/p>\n

$490,000. \u00a0\u00a0<\/p>\n

$460,000.\u00a0<\/p>\n

$520,000.<\/p>\n

\u00a0<\/p>\n

Question 9 \u00a0<\/p>\n

Which of the following adjustments to convert net income to net cash provided by operating activities is correct?<\/p>\n

\u00a0<\/p>\n

\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0Add to Net Income \u00a0 \u00a0 \u00a0 \u00a0\u00a0Deduct from Net Income\u00a0<\/p>\n

Accounts Receivable \u00a0 \u00a0 \u00a0 \u00a0\u00a0increase\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u00a0decrease\u00a0<\/p>\n

Prepaid Expensesincrease\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u00a0decrease\u00a0<\/p>\n

Inventory\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0decrease\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0increase\u00a0<\/p>\n

Taxes Payable\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u00a0decrease\u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u00a0increase<\/p>\n

\u00a0<\/p>\n

Question 10 \u00a0<\/p>\n

On the statement of cash flows using the indirect method, patent amortization expense will<\/p>\n

\u00a0<\/p>\n

be added to net income in the operating section.\u00a0<\/p>\n

appear as an inflow of cash in the investing section.\u00a0<\/p>\n

appear as an outflow of cash in the investing section.\u00a0<\/p>\n

be deducted from net income in the operating section.<\/p>\n

\u00a0<\/p>\n

Question 11 \u00a0<\/p>\n

Blocker Company reported a net loss of $5,000 for the year ended December 31, 2013. During the year, accounts receivable increased $14,000, merchandise inventory decreased $10,000, accounts payable decreased by $20,000, and depreciation expense of $10,000 was recorded. During 2013, operating activities<\/p>\n

\u00a0<\/p>\n

provided net cash of $27,000.\u00a0<\/p>\n

provided net cash of $17,000.\u00a0<\/p>\n

used net cash of $19,000. \u00a0<\/p>\n

used net cash of $27,000<\/p>\n

\u00a0<\/p>\n

Question 12 \u00a0<\/p>\n

Joan\u2019s Vegetable Market had the following transactions during 2013:<\/p>\n

\u00a0<\/p>\n

1. \u00a0Issued $60,000 of par value common stock for cash.<\/p>\n

2. \u00a0Repaid a 6 year note payable in the amount of $21,000.<\/p>\n

3. \u00a0Acquired land by issuing common stock of par value $50,000.<\/p>\n

4. \u00a0Declared and paid a cash dividend of $5,000.<\/p>\n

5. \u00a0Sold a long-term investment (cost $63,000) for cash of $6,000.<\/p>\n

6. \u00a0Acquired an investment in IBM stock for cash of $10,000.<\/p>\n

\u00a0<\/p>\n

What is the net cash provided by financing activities?<\/p>\n

\u00a0<\/p>\n

$80,000\u00a0<\/p>\n

$39,000\u00a0<\/p>\n

$34,000 \u00a0 \u00a0<\/p>\n

$0<\/p>\n

\u00a0<\/p>\n

Question 13 \u00a0<\/p>\n

Land acquired from the issuance of common stock is reported<\/p>\n

\u00a0<\/p>\n

in a separate schedule at the bottom of the statement.\u00a0<\/p>\n

as an investing activity.\u00a0<\/p>\n

as an operating activity.\u00a0<\/p>\n

as a financing activity.<\/p>\n

\u00a0<\/p>\n

Question 14 \u00a0<\/p>\n

Using the indirect method, patent amortization expense for the period<\/p>\n

\u00a0<\/p>\n

is added to net income.\u00a0<\/p>\n

is deducted from net income.\u00a0<\/p>\n

causes cash to decrease.\u00a0<\/p>\n

causes cash to increase.<\/p>\n

\u00a0<\/p>\n

Question 15 \u00a0<\/p>\n

The statement of cash flows reports each of the following except<\/p>\n

\u00a0<\/p>\n

the net change in cash.\u00a0<\/p>\n

cash receipts from operating activities.\u00a0<\/p>\n

cash payments from investing activities.\u00a0<\/p>\n

cash sales.<\/p>\n

\u00a0<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Question 1 \u00a0 Which of the following adjustments to convert net income to net cash provided by operating activities is incorrect? \u00a0 \u00a0Add to Net IncomeDeduct from Net Income \u00a0 Inventorydecreaseincrease\u00a0 Accounts Payableincreasedecrease\u00a0 Accounts Receivabledecreaseincrease\u00a0 Prepaid Expensesincreasedecrease \u00a0 Question 2 \u00a0 Which of the following transactions does not affect cash during a period? \u00a0 Collection […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"class_list":["post-23263","post","type-post","status-publish","format-standard","hentry","category-education"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/23263","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/comments?post=23263"}],"version-history":[{"count":0,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/23263\/revisions"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=23263"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=23263"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=23263"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}