Cashflow I (Katas)

A company made purchases from suppliers totaling USD 100,000. During the year, accounts payable increased by USD 5,000. The cash paid to suppliers is most likely:

A company reports a loss of USD 8,000 on the retirement of debt. This loss is included in the calculation of Net Income. To calculate CFO using the indirect method, this loss should be:

A company reports revenue of USD 500,000 for the year. During the same period, accounts receivable increased by USD 20,000. Under the direct method, the cash received from customers is most likely:

Interest and dividends received from investments are classified under US GAAP as operating cash flows, while IFRS most likely allows them as:

Operating activities on the cash flow statement most likely relate to:

Investing activities on the cash flow statement are most likely linked to changes in:

Financing activities on the cash flow statement most likely relate to changes in:

A corporation buys back 1,000 of its own shares from the open market for USD 25,000. This transaction is classified as:

Under the indirect method, an increase in inventory is most likely treated as:

The income statement and statement of cash flows provide key linkages between which balance sheet sections?

A company has a bank overdraft balance. Under IFRS, this overdraft is most likely considered part of:

A company reports revenue of USD 200,000. During the year, deferred (unearned) revenue decreased by USD 5,000. Under the direct method, cash collected from customers is most likely:

Using the indirect method, a user is most likely to get an indication of earnings quality because it:

A US company declares and pays a cash dividend of USD 100,000 to its shareholders. Under US GAAP, this payment is reported as:

In computing cash flows from an accrual expense, a decrease in a related operating liability is most likely:

When computing cash flows, a decrease in a related operating asset is most likely:

Interest paid is classified as an operating cash flow under US GAAP, while IFRS most likely allows it to be classified as:

Under the indirect method, the CFO section most likely starts with which figure?:

Under the indirect method, CFO is most accurately described as:

In the indirect method, net income is also adjusted for changes in which items?:

An international firm reporting under IFRS receives USD 10,000 in interest from its bond investments. The company may classify this cash inflow as:

A company reports Net Income of USD 100,000. This figure includes a depreciation expense of USD 15,000. Under the indirect method, the adjustment for depreciation to arrive at Cash Flow from Operations (CFO) is:

Wages Payable decreased by USD 4,000. Under the indirect method, how is this change reflected in the determination of CFO?

To convert an income statement revenue item to cash receipts, an increase in a related operating asset is most likely:

Interest expense for the period is USD 10,000. The interest payable account decreased by USD 1,000. The cash paid for interest is most likely:

Which item is most likely adjusted in the indirect method because it affects net income but not operating cash flow?:

Under the indirect method, net income is adjusted for net changes in which accounts to arrive at CFO?

A firm sells a piece of machinery with a book value of USD 50,000 for USD 60,000 cash. In the Statement of Cash Flows, the Investing Cash Flow reported is:

Under the indirect method, gains or losses on asset sales are adjusted in CFO primarily because they:

A company sells an old machine and records a gain on sale of USD 5,000 in its Net Income. Under the indirect method, how is this gain treated in the operating cash flow section?

Which method most likely reports major classes of gross cash receipts and gross cash payments in CFO?

Bank overdrafts are most likely treated under IFRS and US GAAP, respectively, as:

The main advantage of the indirect method is most accurately described as it:

A company reports insurance expense of USD 12,000. Prepaid insurance expenses increased by USD 3,000 during the year. The cash paid for insurance is most likely:

A firm reports salary and wage expense of USD 80,000. The balance sheet shows that salary and wages payable increased by USD 2,000 during the year. The cash paid to employees is most likely:

Cash flow from operations (CFO) is most likely different from earnings because:

During the year, a company's Accounts Receivable increased by USD 20,000. Under the indirect method, this change is recorded as:

Taxes paid are classified as operating cash flows under US GAAP; under IFRS they are most accurately described as:

A retailer's Inventory balance decreased by USD 12,000 over the fiscal year. In the indirect method cash flow statement, this change is presented as:

Under US GAAP, a company pays USD 50,000 in interest on its long-term bonds. This cash outflow is classified in the Statement of Cash Flows as:

To compute operating cash flow, an increase in a related operating liability is most likely:

A retailer reports Cost of Goods Sold (COGS) of USD 200,000. During the year, inventory levels increased by USD 15,000. The total purchases from suppliers for the year are most likely:

Accounts Payable increased by USD 7,000 during the period. Using the indirect method, this adjustment to Net Income is:

Dividends paid are classified as a financing cash flow under US GAAP and under IFRS are most likely classified as:

A company reporting under IFRS pays dividends to its common shareholders. To show the ability of the company to pay dividends out of operating cash flow, the company chooses to classify this payment as:

When a company uses the direct method, US GAAP most likely requires what additional disclosure?

The statement of cash flows most accurately reconciles which balance sheet account between two dates?

Which transaction is most likely classified as a financing cash outflow?

Which item is most likely added back to net income under the indirect method because it affects net income but not operating cash flow?: