Question 1
Which of the following items will NOT appear in the operating activities section of the statement of cash flows when using the direct method?
Payments to employees
Collection from customers
Net Income
Payment to suppliers
Question 2
The indirect method of preparing the statement of cash flows
Is seldom used by companies because of the extra effort required to gather cash flow information.
Calculates only the cash effect of each operating activity.
Is the method preferred by the FASB.
Begins with net income, adds back noncash expenses, and adjusts for changes in the current asset and current liability accounts.
Question 3
Delfinio's has total revenues of $4,315, selling and administrative expenses of $611, depreciation of $309, cost of goods sold of $2,403, taxes of $178, dividends of $80, and interest expense of $168. What is the amount of the non-cash items?
$481
$477
$248
$309
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More on the Financial Accounting Quiz 2 Undated paper
The IIT Madras BS Financial Accounting (Financial Accounting) Quiz 2 paper sat on Undated, in the Undated: 30 questions for 30 marks in 120 minutes. The first 3 questions are below. Sign in with Google — it is free — to see the whole paper with its answers and explanations, in learning mode or as a timed mock test.
| Feature | Financial Accounting Quiz 2 Undated at a glance |
|---|---|
| Term | Undated |
| Subject | Financial Accounting |
| Questions | 30 |
| Marks | 30 |
| Duration | 120 min |
| MCQ | 30 |
| Negative marking | No negative marking. |
| Updated |