Foxx Corp.'s comparative balance sheet at December 31, 2013 and 2012 reported accumulated depreciation balances of $850,000 and $600,000, respectively. Property with a cost of $50,000 and a carrying amount of $38,000 was the only property sold in 2013. Depreciation charged to operations in 2013 was

Foxx Corp.'s comparative balance sheet at December 31, 2013 and 2012 reported accumulated depreciation balances of $850,000 and $600,000, respectively. Property with a cost of $50,000 and a carrying amount of $38,000 was the only property sold in 2013. Depreciation charged to operations in 2013 was

a. $238,000.
b. $250,000.
c. $262,000.
d. $212,000.





Answer: C

A company acquired a building, paying a portion of the purchase price in cash and issuing a mortgage note payable to the seller for the balance.

A company acquired a building, paying a portion of the purchase price in cash and issuing a mortgage note payable to the seller for the balance.

In a statement of cash flows, what amount is included in investing activities for the above transaction?

a. Cash payment
b. Acquisition price
c. Zero
d. Mortgage amount

In a statement of cash flows, what amount is included in financing activities for the above transaction?

a. Cash payment
b. Acquisition price
c. Zero
d. Mortgage amount
a. Cash payment


Answer: C

How should significant noncash transactions be reported in the statement of cash flows according to FASB Statement No. 95?

How should significant noncash transactions be reported in the statement of cash flows according to FASB Statement No. 95?

a. They should be incorporated in the statement of cash flows in a section labeled, "Significant Noncash Transactions."
b. Such transactions should be incorporated in the section (operating, financing, or investing) that is most representative of the major component of the transaction.
c. These noncash transactions are not to be incorporated in the statement of cash flows. They may be summarized in a separate schedule at the bottom of the statement or appear in a separate supplementary schedule to the financials.
d. They should be handled in a manner consistent with the transactions that affect cash flows.






Answer: C

Which of the following is shown on a statement of cash flows?

Which of the following is shown on a statement of cash flows?

a. A stock dividend
b. A stock split
c. An appropriation of retained earnings
d. None of these






Answer: D

In reporting extraordinary transactions on a statement of cash flows (indirect method), the

In reporting extraordinary transactions on a statement of cash flows (indirect method), the

a. gross amount of an extraordinary gain should be deducted from net income.
b. net of tax amount of an extraordinary gain should be added to net income.
c. net of tax amount of an extraordinary gain should be deducted from net income.
d. gross amount of an extraordinary gain should be added to net income.

Answer: A

Dolan Company reports its income from investments under the equity method and recognized income of $25,000 from its investment in Moss Co. during the current year, even though no dividends were declared or paid by Moss during the year. On Dolan's statement of cash flows (indirect method), the $25,000 should

Dolan Company reports its income from investments under the equity method and recognized income of $25,000 from its investment in Moss Co. during the current year, even though no dividends were declared or paid by Moss during the year. On Dolan's statement of cash flows (indirect method), the $25,000 should

a. not be shown.
b. be shown as cash inflow from investing activities.
c. be shown as cash outflow from financing activities.
d. be shown as a deduction from net income in the cash flows from operating activities section.

Answer: D