ACCT 2000 Actual Exam Questions with
Verified Answers
For UOP, there is ______ to the amount of depreciation recorded each year as it is dependent
on how much the asset was used that year. - ✔✔no pattern
In the sale of an asset, the book value of the asset is compared with the cash received from the
sale. If the cash received exceeds the book value a _______ is recorded. If the cash received is
less than the book value a _______ is recorded. - ✔✔gain on sale (increase rev)
loss on sale (increase exp)
The _______ shows the changes in cash for the same period of time as that covered by the
income statement. It provides what two things? - ✔✔statement of cash flow
cash receipts (inflow) and cash payments (outflow)
How does the statement of cash flows differ from the other major financial statements
(income and balance sheet)? - ✔✔shows all increases/decreases in CASH instead of being
based on accrual accounting
What are the three categories the statement of cash flow is separated into? -
✔✔operating activities
investing activities
financing activities
what are three example of non-cash revenues and expenses? - ✔✔depreciation (non-
cash expense)
losses
gains
, sale of good or service - ✔✔operating cash inflow
return on loans and on equity securities - ✔✔operating cash inflow
to suppliers for inventory - ✔✔operating cash outflow
to employees for salaries - ✔✔operating cash outflow
to government for taxes - ✔✔operating cash outflow
to lenders for interest - ✔✔operating cash outflow
to others for expenses - ✔✔operating cash outflow
section of the statement of cash flows that includes the cash inflows and outflows related
to the purchase and sale of long term assets and investment - ✔✔investing activities
section of the statement of cash flows that includes the cash inflows and outflows related to
the normal course of business operation (involve income statement items) -
✔✔operating activities
from sale of property, plant, and equipment - ✔✔investing cash inflow
from sale of investments in other entities - ✔✔investing cash inflow
from collection of principal on loans to other entities (interest received is considered
an operating activity since it effects net income) - ✔✔investing cash inflow
Verified Answers
For UOP, there is ______ to the amount of depreciation recorded each year as it is dependent
on how much the asset was used that year. - ✔✔no pattern
In the sale of an asset, the book value of the asset is compared with the cash received from the
sale. If the cash received exceeds the book value a _______ is recorded. If the cash received is
less than the book value a _______ is recorded. - ✔✔gain on sale (increase rev)
loss on sale (increase exp)
The _______ shows the changes in cash for the same period of time as that covered by the
income statement. It provides what two things? - ✔✔statement of cash flow
cash receipts (inflow) and cash payments (outflow)
How does the statement of cash flows differ from the other major financial statements
(income and balance sheet)? - ✔✔shows all increases/decreases in CASH instead of being
based on accrual accounting
What are the three categories the statement of cash flow is separated into? -
✔✔operating activities
investing activities
financing activities
what are three example of non-cash revenues and expenses? - ✔✔depreciation (non-
cash expense)
losses
gains
, sale of good or service - ✔✔operating cash inflow
return on loans and on equity securities - ✔✔operating cash inflow
to suppliers for inventory - ✔✔operating cash outflow
to employees for salaries - ✔✔operating cash outflow
to government for taxes - ✔✔operating cash outflow
to lenders for interest - ✔✔operating cash outflow
to others for expenses - ✔✔operating cash outflow
section of the statement of cash flows that includes the cash inflows and outflows related
to the purchase and sale of long term assets and investment - ✔✔investing activities
section of the statement of cash flows that includes the cash inflows and outflows related to
the normal course of business operation (involve income statement items) -
✔✔operating activities
from sale of property, plant, and equipment - ✔✔investing cash inflow
from sale of investments in other entities - ✔✔investing cash inflow
from collection of principal on loans to other entities (interest received is considered
an operating activity since it effects net income) - ✔✔investing cash inflow
