Which of the following is not one of the reasons why net income differs from cash flows from operations under the indirect method of calculating cash flows? Which of the following is the correct formula for calculating cash collections from customers? Which of the following statements about the statement of cash flows is correct? Which of the following statements is false? Which of the following statements is true? Which of the following transactions would not create a cash flow? Which of the following would not be a cash flow from investing activities? Which statement is false regarding the preparation of the indirect method of the statement of cash flows? Adjustments for dilutive securities and the adjustment to weighted average number of shares outstanding presumes that the dilutive securities are converted to common shares Another term for earnings power is

1. Which of the following is not one of the reasons why net income differs from cash flows from operations under the indirect method of calculating cash flows?

sale or repurchase of capital stock

2. Which of the following is the correct formula for calculating cash collections from customers?

sales for the period plus accounts receivable at the beginning of the period minus accounts receivable at the end of the period

3. Which of the following statements about the statement of cash flows is correct?

Cash dividends received on stock investments are classified as cash flows from operating activities.

4. Which of the following statements is false?

Sale of equipment creates investing cash outflow equal to its selling price (Purchase of equipment, patent, short-term investments are investing cash outflows is TRUE)

5. Which of the following statements is true?

Purchase of a patent is an investing cash outflow

6. Which of the following transactions would not create a cash flow?

Amortization of patent for the period (Payment of a cash dividend, Sale of equipment at book value (i.e. no gain or loss), The company purchased some of its own stock from a stockholder DO create a cash flow)

7. Which of the following would not be a cash flow from investing activities?

Collection of interest revenue on a long-term note receivable.

8. Which statement is false regarding the preparation of the indirect method of the statement of cash flows?

An increase in accounts receivable is added to net income

9. Adjustments for dilutive securities and the adjustment to weighted average number of
   shares outstanding presumes that the dilutive securities are converted to common shares

as of the beginning of the year

10. Another term for earnings power is

sustainable earnings