Bloom’s: Remembering ACCT.WARD.16.16-04 - 16-04 LEARNING OBJECTIVES: ACBSP-APC-23 - Financial Statement Analysis ACCREDITING STANDARDS: ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Free cash flow is flow cash from operations less cash used for investments in PP&E needed to maintain current production dividends and cash to redeem payable investments in PP&E needed to achieve desired future production fixed assets needed to maintain productivity and cash to redeem bonds payable a ANSWER: Easy DIFFICULTY: Remembering ACCT.WARD.16.16-04 - 16-04 LEARNING OBJECTIVES: ACBSP-APC-23 - Financial Statement Analysis ACCREDITING STANDARDS: - Measurement BUSPROG: Analytic The operating cash flow available for company use after purchasing the fixed assets that are necessary to maintain current productive capacity is called the free cash flow modified cash flow PPE cash flow restricted cash flow a ANSWER: Easy DIFFICULTY: Remembering ACCT.WARD.16.16-04 - 16-04 LEARNING OBJECTIVES: ACBSP-APC-23 - Financial Statement Analysis ACCREDITING STANDARDS: - Measurement BUSPROG: Analytic The cost of merchandise sold during the year was $45,000. Merchandise inventories were $13,500 and $10,500 at the beginning and end of the year, respectively. Accounts payable were $7,000 and $5,000 at the beginning and end of the year, respectively. Using the direct method of reporting cash flows from operating activities, cash payments for merchandise total a. $46,000 b. $44,000 c. $50,000 d. $40,000 b ANSWER: Challenging DIFFICULTY: Bloom’s: Applying
Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.16-04 - 16-04 ACCREDITING STANDARDS: ACBSP-APC-23 - Financial Statement Analysis ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Free cash flow is flow cash from operations less cash used for investments in PP&E needed to maintain current production dividends and cash to redeem payable investments in PP&E needed to achieve desired future production fixed assets needed to maintain productivity and cash to redeem bonds payable ANSWER: a DIFFICULTY: Easy Remembering LEARNING OBJECTIVES: ACCT.WARD.16.16-04 - 16-04 ACCREDITING STANDARDS: ACBSP-APC-23 - Financial Statement Analysis - Measurement BUSPROG: Analytic The operating cash flow available for company use after purchasing the fixed assets that are necessary to maintain current productive capacity is called the free cash flow modified cash flow PPE cash flow restricted cash flow ANSWER: a DIFFICULTY: Easy Remembering LEARNING OBJECTIVES: ACCT.WARD.16.16-04 - 16-04 ACCREDITING STANDARDS: ACBSP-APC-23 - Financial Statement Analysis - Measurement BUSPROG: Analytic The cost of merchandise sold during the year was $45,000. Merchandise inventories were $13,500 and $10,500 at the beginning and end of the year, respectively. Accounts payable were $7,000 and $5,000 at the beginning and end of the year, respectively. Using the direct method of reporting cash flows from operating activities, cash payments for merchandise total a. $46,000 b. $44,000 c. $50,000 d. $40,000 ANSWER: b DIFFICULTY: Challenging Bloom’s: Applying