Chapter 11 Terms

Question 1

What are the four financial statements?

Answer 1

1. balance sheet
2. income statement
3. statement of changes in equity
4. statement of cash flows (SCF)

Question 2

SCF

Answer 2

statement of cash flows

identifies the sources and uses of cash during the accounting period

sources = inflows
uses = outflows

Question 3

What are the three things SCF describes?

Answer 3

1. financing activities
2. investing activities
3. operating activities

Question 4

cash in SCF

Answer 4

includes cash equivalents: assets that can be quickly converted into a known amount of cash (including short-term investments provided they are not too risky or have too much change in value)

• in this class if the investment has a maturity of three months or less from the date of acquisition, it will be considered cash
• these particularities must be disclosed on the SCF or in a note to the financial statements

Question 5

The statement of cash flows converts accrual net income to a ___________________

Answer 5

cash basis net income

Question 6

11.2 why are the adjustments made? page 3

Answer 6

must read this again on a day when I am ready to absorb it

this is page 3 of lesson 11.2

Question 7

Cash flows from investing activities

Answer 7

cash proceeds from sale of non-current assets $
cash paid to purchase non-currant assets $
net cash inflow/outflow from investing activities $

Question 8

Financing activities

Answer 8

Cash flows from financing activities:
- cash proceeds from the issuance of shares $
- cash paid for repurchase of shares $
- cash proceeds from borrowings $
- cash repayments of borrowings $
- cash paid for dividends $
Net cash inflow/outflow from financing activities $

Notice that cash received from dividends is not included

Question 9

Noncash investing; what is special about it?

Answer 9

must be disclosed either in a note to the financial statements or in a schedule on the SCF

Question 10

Noncash investing; what is special about it?

Answer 10

must be disclosed either in a note to the financial statements or in a schedule on the SCF

Question 11

Classify the following as operating, investing, financing, or non-cash investing and financing activities:

Paid interest on outstanding bonds

Answer 11

operating

Question 12

Classify the following as operating, investing, financing, or non-cash investing and financing activities:

issued common shares for cash

Answer 12

financing

Question 13

Classify the following as operating, investing, financing, or non-cash investing and financing activities:

change in accumulated depreciation

Answer 13

operating

Question 14

Classify the following as operating, investing, financing, or non-cash investing and financing activities:

common shares were sold for cash

Answer 14

financing

Question 15

Classify the following as operating, investing, financing, or non-cash investing and financing activities:

received interest on investment

Answer 15

operating

Question 16

Classify the following as operating, investing, financing, or non-cash investing and financing activities:

sold delivery equipment at a loss

Answer 16

investing

Question 17

Classify the following as operating, investing, financing, or non-cash investing and financing activities:

change in equipment account

Answer 17

investing

Question 18

Classify the following as operating, investing, financing, or non-cash investing and financing activities:

preferred shares were converted into common shares

Answer 18

noncash financing and investing

Question 19

Classify the following as operating, investing, financing, or non-cash investing and financing activities:

received interest on investment

Answer 19

operating

Question 20

Classify the following as operating, investing, financing, or non-cash investing and financing activities:

retirement of debt by issuing shares

Answer 20

noncash financing and investing

Question 21

Classify the following as operating, investing, financing, or non-cash investing and financing activities:

Issued common shares for cash

Answer 21

financing

Question 22

Classify the following as operating, investing, financing, or non-cash investing and financing activities:

paid utilities expense

Answer 22

operating

Question 23

Classify the following as operating, investing, financing, or non-cash investing and financing activities:

collected proceeds from sale of long-term investments

Answer 23

investing

Question 24

Classify the following as operating, investing, financing, or non-cash investing and financing activities:

change in accounts receivable

Answer 24

operating

Question 25

Classify the following as operating, investing, financing, or non-cash investing and financing activities: sold delivery equipment at a loss

Answer 25

investing

Question 26

Classify the following as operating, investing, financing, or non-cash investing and financing activities: sold delivery equipment at a loss

Answer 26

investing

Question 27

Classify the following as operating, investing, financing, or non-cash investing and financing activities: investment in shares by issuing long-term note payable

Answer 27

noncash financing and investing

Question 28

Classify the following as operating, investing, financing, or non-cash investing and financing activities: Leasing of assets in capital lease transaction

Answer 28

noncash financing and investing

Question 29

Classify the following as operating, investing, financing, or non-cash investing and financing activities: bonds were retired

Answer 29

financing

Question 30

Classify the following as operating, investing, financing, or non-cash investing and financing activities: purchase of furniture by issuing mortgage payable

Answer 30

noncash financing and investing

Question 31

Classify the following as operating, investing, financing, or non-cash investing and financing activities: land was sold at a gain

Answer 31

investing

Question 32

Classify the following as operating, investing, financing, or non-cash investing and financing activities: change in equipment account

Answer 32

investing

Question 33

Classify the following as operating, investing, financing, or non-cash investing and financing activities: machinery was purchased by giving a long-term note to the seller

Answer 33

noncash financing and investing

Question 34

Classify the following as operating, investing, financing, or non-cash investing and financing activities: received payments from customers

Answer 34

operating

Question 35

Classify the following as operating, investing, financing, or non-cash investing and financing activities: paid dividends

Answer 35

financing

Question 36

Classify the following as operating, investing, financing, or non-cash investing and financing activities: change in equipment account

Answer 36

investing

Question 37

Classify the following as operating, investing, financing, or non-cash investing and financing activities: received interest on investment

Answer 37

operating

Question 38

Classify the following as operating, investing, financing, or non-cash investing and financing activities: collected proceeds from sale of long-term investments

Answer 38

investing

Question 39

Classify the following as operating, investing, financing, or non-cash investing and financing activities: exchange of vehicle for building

Answer 39

noncash financing and investing

Question 40

Classify the following as operating, investing, financing, or non-cash investing and financing activities: common shares were sold for cash

Answer 40

financing

Question 41

Classify the following as operating, investing, financing, or non-cash investing and financing activities: paid dividends

Answer 41

financing

Question 42

Classify the following as operating, investing, financing, or non-cash investing and financing activities: land was sold at a gain

Answer 42

investing

Question 43

Classify the following as operating, investing, financing, or non-cash investing and financing activities: common shares were sold for cash

Answer 43

financing

Question 44

Classify the following as operating, investing, financing, or non-cash investing and financing activities: proceeds from sale of land

Answer 44

investing

Question 45

Classify the following as operating, investing, financing, or non-cash investing and financing activities: collected proceeds from sale of long-term investments

Answer 45

Investing

Question 46

Classify the following as operating, investing, financing, or non-cash investing and financing activities: sold delivery equipment at a loss

Answer 46

investing

Question 47

Classify the following as operating, investing, financing, or non-cash investing and financing activities: collected proceeds from the sale of long-term investments

Answer 47

investing

Question 48

Classify the following as operating, investing, financing, or non-cash investing and financing activities: dividends were received on shares of another company held as an investment

Answer 48

operating

Question 49

Classify the following as operating, investing, financing, or non-cash investing and financing activities: paid dividends

Answer 49

financing

Question 50

Classify the following as operating, investing, financing, or non-cash investing and financing activities: change in accrued wages

Answer 50

operating

Question 51

Classify the following as operating, investing, financing, or non-cash investing and financing activities: paid interest on outstanding bonds

Answer 51

operating

Question 52

Classify the following as operating, investing, financing, or non-cash investing and financing activities: Received interest on investment

Answer 52

operating

Question 53

Classify the following as operating, investing, financing, or non-cash investing and financing activities: practice more on p. 7 of 11.2

Question 54

Continue on page 8 of 11.2