d. $45,000 c ANSWER: Moderate DIFFICULTY: Applying ACCT.WARD.16.16-04 - 16-04 LEARNING OBJECTIVES: ACCT.ACBSP.APC.24 - Statement of Cash Flows ACCREDITING STANDARDS: ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Cash payments for merchandise were a. $39,000 b. $33,000 c. $29,000 d. $23,000 b ANSWER: Challenging DIFFICULTY: Applying ACCT.WARD.16.16-04 - 16-04 LEARNING OBJECTIVES: ACCT.ACBSP.APC.24 - Statement of Cash Flows ACCREDITING STANDARDS: ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Income tax was $175,000 for the year. Income tax payable was $30,000 and $40,000 at the beginning and end of the year, respectively. Cash payments for income tax reported on the statement of cash flows using the direct method is a. $175,000 b. $165,000 c. $205,000 d. $215,000 b ANSWER: Easy DIFFICULTY: Bloom’s: Applying ACCT.WARD.16.16-04 - 16-04 LEARNING OBJECTIVES: ACCT.ACBSP.APC.24 - Statement of Cash Flows ACCREDITING STANDARDS: ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Free cash flow is all cash in the bank cash from operations cash from financing less cash used to purchase fixed assets to maintain productive capacity and cash used for dividends cash flow from operations less cash used to purchase fixed assets to maintain productive capacity d ANSWER: Easy DIFFICULTY:
d. $45,000 ANSWER: c DIFFICULTY: Moderate Applying LEARNING OBJECTIVES: ACCT.WARD.16.16-04 - 16-04 ACCREDITING STANDARDS: ACCT.ACBSP.APC.24 - Statement of Cash Flows ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Cash payments for merchandise were a. $39,000 b. $33,000 c. $29,000 d. $23,000 ANSWER: b DIFFICULTY: Challenging Applying LEARNING OBJECTIVES: ACCT.WARD.16.16-04 - 16-04 ACCREDITING STANDARDS: ACCT.ACBSP.APC.24 - Statement of Cash Flows ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Income tax was $175,000 for the year. Income tax payable was $30,000 and $40,000 at the beginning and end of the year, respectively. Cash payments for income tax reported on the statement of cash flows using the direct method is a. $175,000 b. $165,000 c. $205,000 d. $215,000 ANSWER: b DIFFICULTY: Easy Bloom’s: Applying LEARNING OBJECTIVES: ACCT.WARD.16.16-04 - 16-04 ACCREDITING STANDARDS: ACCT.ACBSP.APC.24 - Statement of Cash Flows ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Free cash flow is all cash in the bank cash from operations cash from financing less cash used to purchase fixed assets to maintain productive capacity and cash used for dividends cash flow from operations less cash used to purchase fixed assets to maintain productive capacity ANSWER: d DIFFICULTY: Easy