1.Arkyn Co.

provided the following data for the year: Cash balance, beg
of the year   1,300; cash flow from financing activities 1,000; cash flow
from operating activities 400; Cash flow from investing activities (1,500);
Total shareholders' equity, beg of year 2,000. What is the cash balance at
the end of the year?
(-/4 Points)
A. 1,200
B. 1,600
C. 1,400
2.A change from the straight line depreciation method to the units of
production method should be accounted for as 
(-/4 Points)
A. Change in accounting estimate
B. Change in accounting principle
C. Prior period adjustment
3.Which type of accounting change should be accounted for in current
and future periods.
(-/4 Points)
A. Change in accounting estimates
B. Change in accounting principle
C. Correction of an  error.
4.A change in an amortization rate, such on a copyright, should be
accounted for
(-/4 Points)
A. Retroactively
B. Currently
C. Prospectively
5.A company had 30,000 ordinary shares outstanding on Jan 1, 2020. On
March 1, the company issued additional 18,000 ordinary shares. Net
income for the year was 99,000. The earnings per share was (round to
the nearest cent)
(-/4 Points)
A.  0.18
B. 1.27
C.  2.20
6.Which of the following is a financing cash flow?
(-/4 Points)
A. Purchase of stock of another company
B. Dividend payments
C. Rental payments
7.How is depreciation expense treated in the statement of cash flows?
(-/4 Points)
A. Added to net income
B. Subtracted from net income
C. Placed in the investing section
8.How many of the following transactions would appear on the
statement of cash flow:
1. Sold and issued new ordinary shares P 30,000;
2. Purchased new machine and paid by issuing the company's own
stock;
3. Purchased land for cash 200,000
4. Sales revenue, 500,000
(-/4 Points)
A. One
B. Two
C. Three
9.A corporation paid 10,000 cash for dividends. The payment should be
(-/4 Points)
A. Cash outflow from financing activities
B. Cash outflow from investing activities
C. Cash  outflow from operating activities
10.A corporation is preparing financial statements every Dec 31. On Dec
31 year 2, a  2,500 decrease in cash is reported on the statement of cash
flows. If the cash account had a balance of  12,500 at Dec 31, year 2, the
cash account balance at Dec 31 year 1 was
(-/4 Points)
A.  10,000
B.  12,500
C. 15,000
11.A corporation reported the following  information:
Sales Revenue (none on credit)    ...................................................    70,000
Cost of Goods Sold (paid in cash)  ................................................     40,000
Gross Margin on Sales      ................................................................     30,000
Depreciation Expense..........................................................................   (   4,000)
Amortization Expense .......................................................................    (   1,000)
Wages Expense ( paid in cash) .......................................................    (   2,500)
Income before taxes...........................................................................       22,500
Income Taxes (30%) paid in cash ................................................     (    4,500)
Net Income .........................................................................................        18,000

The Net cash flow from operating activities is

(-/4 Points)
A. 23,000
B. 27,500
C. 22,500
12.The following item is found on the income statement of a
corporation: Gain from sale of equipment   5,000; The equipment sold
during the year originally cost   20,000, had accumulated depreciation
of  16,000 and was sold for cash. The statement of cash flow should
show an inflow of cash from investing activities of
(-/4 Points)
A. 9,000
B. 5,000
C. 4,000
13.Which of the following is not a primary objective of the statement of 
cash flows?
(-/4 Points)
A. To disclose increase or decrease in cash
B. to help investors and   creditors assess the firm's financial position
C. To help investors and  creditors assess the firm's future cash flows
14.Caleb Corp sold a fully depreciated  equipment for  1,000. This
transaction would be reported on the statement of cash flows as
(-/4 Points)
A. Operating activity
B. Investing activity
C. Financing activity
15.If during the accounting period,  sales revenues is 20,000 and
accounts receivable increases by 5,000; cash received from customers
for the period is
(-/4 Points)
A.  25,000
B. 20,000
C.  15,000
16.Selected information from Chloe Co's accounting records is as
follows:
Cash paid to retire ordinary shares ................................................    12,000
Proceeds from issuance of preference shares ...........................     15,000
Cash  dividends paid ..........................................................................        5,000
Proceeds from sale of equipment ..................................................     25,000

The net cash flow  from  financing activities is

(-/4 Points)
A.   2,000 net outflow of cash
B. 13,000, net outflow of cash
C.  23,000, net outflow of  cash
17.Selected information from Chloe Co's accounting records is as
follows:
Cash paid to retire ordinary shares ................................................    12,000
Proceeds from issuance of preference shares ...........................     15,000
Cash  dividends paid ..........................................................................        5,000
Proceeds from sale of equipment ..................................................     25,000
The net cash flow  from  investing activities is

(-/4 Points)
A. 25,000, net inflow of cash
B. 2,000, net outflow of cash
C. 23,000, net outflow of cash
18.Which of the following assets is included in the adjustment of net
income to obtain cash flow from operating activities?
(-/4 Points)
A. Accounts Receivable
B. Inventory
C. All of the above
19.How is it possible for a  firm to be profitable and still go bankrupt?
(-/4 Points)
A. Earnings have increased more rapidly than sales
B. The firm has positive net income but has failed to generate cash from
operations
C. Sales revenue has been adjusted for inflation
20.Why  has cash flow from operations become increasingly important
as an analytical tool?
(-/4 Points)
A. Inflation has  distorted the meaningfulness of net income
B. Firms may have uncollected accounts receivable and  unsalable inventory
on the books
C. All  of the above.
21.Which of the following could  lead to cash flow problems?
(-/4 Points)
A. Obsolete inventory, accounts receivable of inferior quality;  easing of
credits  by suppliers.
B. Slow-moving inventory; accounts receivable of inferior quality; tightening
of credit by suppliers
C. Obsolete inventory; improved quality of accounts receivable; easing of 
credit by suppliers
22.The following information is taken from the records of Krystel Trading
Net Income................................................................................................     5,000
Depreciation expense ...........................................................................     2,500
Increase in deferred tax liabilities....................................................         500
Decrease in cash...................................................................................       3,000
Increase in Marketable Securities .................................................       1,000
Decrease in Accounts Receivable ..................................................       2,000
Increase in inventories..........................................................................     9,000
Decrease in accounts payable ..........................................................     5,000
Increase in accrued liabilities .............................................................     1,000
Increase in property and equipment...............................................   14,000
Increase in short- term notes payable .........................................    19,000
Decrease in long- term notes payable ........................................      4,000

What is the net cash flow from operating activities using indirect
method?
(-/4 Points)
A.  (3,000)
B.   ( 1,000)
C. 5,000
23.The following information is taken from the records of Krystel Trading
Net Income................................................................................................     5,000
Depreciation expense ...........................................................................     2,500
Increase in deferred tax liabilities....................................................         500
Decrease in cash...................................................................................       3,000
Increase in Marketable Securities .................................................       1,000
Decrease in Accounts Receivable ..................................................       2,000
Increase in inventories..........................................................................     9,000
Decrease in accounts payable ..........................................................     5,000
Increase in accrued liabilities .............................................................     1,000
Increase in property and equipment...............................................   14,000
Increase in short- term notes payable .........................................    19,000
Decrease in long- term notes payable ........................................      4,000

What is the net cash flow from investing activities?

(-/4 Points)
A. 14,000
B. (14,000)
C. 21,000
24.The following information is taken from the records of Krystel Trading
Net Income................................................................................................     5,000
Depreciation expense ...........................................................................     2,500
Increase in deferred tax liabilities....................................................         500
Decrease in cash...................................................................................       3,000
Increase in Marketable Securities .................................................       1,000
Decrease in Accounts Receivable ..................................................       2,000
Increase in inventories..........................................................................     9,000
Decrease in accounts payable ..........................................................     5,000
Increase in accrued liabilities .............................................................     1,000
Increase in property and equipment...............................................   14,000
Increase in short- term notes payable .........................................    19,000
Decrease in long- term notes payable ........................................      4,000
What is the net cash flow from financing activities?
(-/4 Points)
A. 15,000
B. (15,000)
C. (14,000)
25.The following information is taken from the records of Krystel Trading
Net Income................................................................................................     5,000
Depreciation expense ...........................................................................     2,500
Increase in deferred tax liabilities....................................................         500
Decrease in cash...................................................................................       3,000
Increase in Marketable Securities .................................................       1,000
Decrease in Accounts Receivable ..................................................       2,000
Increase in inventories..........................................................................     9,000
Decrease in accounts payable ..........................................................     5,000
Increase in accrued liabilities .............................................................     1,000
Increase in property and equipment...............................................   14,000
Increase in short- term notes payable .........................................    19,000
Decrease in long- term notes payable ........................................      4,000

What is the change in cash?

(-/4 Points)
A. (2,000)
B.  2,000
C.  3,000