ACCOUNTING
JEOPARDY
ACCOUNTING REVIEW
DOCSEDA
SCF
Basic
Concepts
SCF
SCF
Classifications Adjustments
SCF
Indirect
SCF
Direct
100
100
100
100
100
200
200
200
200
200
300
300
300
300
300
400
400
400
400
400
500
500
500
500
500
SCF Basic Concepts
100
Major aim of Statement of Cash Flow (SCF)
is to explain change in this account.
A: What is Cash?
Docseda
SCF Basic Concepts
200
These are the two major methods of
preparing a Statement of Cash Flow (SCF).
A: What are Direct and Indirect Methods?
Docseda
SCF Basic Concepts
300
These are three major types of activities that
are analyzed in a Statement of Cash Flow.
A: What are Operating, Investing, and
Financing Activities?
Docseda
SCF Basic Concepts
400
Major aim of Operating Activities Section of
SCF is to convert this financial statement
item from accrual to cash basis.
A: What is Net Income?
Docseda
SCF Basic Concepts
500
This section of Statement of Cash Flows has
nothing to do with cash transactions.
A: What is Schedule of significant Non-cash
investing and financing activities or
transactions?
Docseda
SCF Classifications
100
The cash purchase of equipment would be
classified as this type of activity in a Statement
of Cash Flow (SCF).
A: What
Docseda
is Investing Activity?
SCF Classifications
200
The issuance of stock for cash would be classified
as this type of activity in a Statement of Cash
Flow (SCF).
A: What is Financing Activity?
Docseda
SCF Classifications
300
The payment of dividends would be classified as
this type of activity in a Statement of Cash Flow
(SCF).
A: What is Financing Activity?
Docseda
SCF Classifications
400
The sale of land by a Real Estate Company would
be classified as this type of activity in a Statement
of Cash Flow (SCF).
A: What is Operating Activity?
Docseda
SCF Classifications
500
The conversion of debt to common stock would be
classified as this type of activity in a Statement of
Cash Flow (SCF).
A: What is a significant Non-cash Financing
activity?
Docseda
SCF Adjustments
100
Under SCF Indirect method, Depreciation Expense is
shown as this type of adjustment to net income in
computation of net cash flow from operating
activities.
A: What is Addition to Net Income?
Docseda
SCF Adjustments
200
Under SCF Indirect method, an increase in Accounts
Receivable is shown as this type of adjustment to net
income in computation of net cash flow from operating
activities.
A: What is Deduction to Net Income?
Docseda
SCF Adjustments
300
Under SCF Indirect method, an increase in Accounts
Payable is shown as this type of adjustment to net
income in computation of net cash flow from operating
activities.
A: What is Addition to Net Income?
Docseda
SCF Adjustments
400
Under SCF Indirect method, a decrease in Income Tax
Payable is shown as this type of adjustment to net
income in computation of net cash flow from
operating activities.
A: What is Deduction to Net Income?
Docseda
SCF Adjustments
500
Under SCF Indirect method, Loss on Sale of Equipment is
shown as this type of adjustment to net income in
computation of net cash flow from operating activities.
A: What is Addition to Net Income?
Docseda
SCF Indirect
100
Based on information below, this amount represents net cash inflow
(outflow) from financing activities to be shown on related SCF.
Comparative Balance Sheet
20x2 20x1 Diff.
Cash
14
3
11
Accounts Receivable(net)
33
24
9
Merchandise Inventory
24
12
12
Prepaid Expenses
5
7
(2)
Long term Investments
105
120
(15)
Land
180
180
0
Building (net)
174
180
(6)
Equipment (net)
150
60
90
Total Assets
685
586
99
Accounts Payable
Accrued Liabilities
Income Tax Payable
Bonds Payable
Total Liabilities
16
9
11
270
306
19
6
9
210
244
(3)
3
2
60
62
Common Stock
Retained Earnings
Total Stockholder's Equity
Total Liabilities and Equity
246
133
379
685
246
96
342
586
0
37
37
99
Income Statement
For Year ended 12/31/20x2
Net Sales
450
Cost of Goods Sold
-228
Gross Margin
222
Operating Exp.(Dep. Exp.of 12)
-90
Operating Income
132
Other Income (Expenses):
Interest Expense
(54)
Interest Income
6
Dividend Income
6
Gain on Disposal of Equip.
12
Loss on Sale of Investment
(15)
-45
Income before Income Taxes
87
Income Tax Expense
-30
Net Income
57
Additional Information:
Sold Investments (BV of 30) for 15
Purchased Investments for 15
Sold Equipment (BV of 30) for 42
Purchased Equipment for 126
Issued bonds for 60; Paid 20 in dividends;
A: What is $40 [60(Bonds)-20(Div)]?
Docseda
SCF Indirect
200
Based on information below, this amount represents net cash inflow (outflow)
from investing activities to be shown on related SCF.
Comparative Balance Sheet
20x2 20x1 Diff.
Cash
14
3
11
Accounts Receivable(net)
33
24
9
Merchandise Inventory
24
12
12
Prepaid Expenses
5
7
(2)
Long term Investments
105
120
(15)
Land
180
180
0
Building (net)
174
180
(6)
Equipment (net)
150
60
90
Total Assets
685
586
99
Accounts Payable
Accrued Liabilities
Income Tax Payable
Bonds Payable
Total Liabilities
16
9
11
270
306
19
6
9
210
244
(3)
3
2
60
62
Common Stock
Retained Earnings
Total Stockholder's Equity
Total Liabilities and Equity
246
133
379
685
246
96
342
586
0
37
37
99
Income Statement
For Year ended 12/31/20x2
Net Sales
450
Cost of Goods Sold
-228
Gross Margin
222
Operating Exp.(Dep. Exp.of 12)
-90
Operating Income
132
Other Income (Expenses):
Interest Expense
(54)
Interest Income
6
Dividend Income
6
Gain on Disposal of Equip.
12
Loss on Sale of Investment
(15)
-45
Income before Income Taxes
87
Income Tax Expense
-30
Net Income
57
Additional Information:
Sold Investments (BV of 30) for 15
Purchased Investments for 15
Sold Equipment (BV of 30) for 42
Purchased Equipment for 126
Issued bonds for 60; Paid 20 in dividends;
A: What is ($84) [15(Inv)+42(Equip)-126(Equip)-15(Inv)]?
Docseda
SCF Indirect
300
Based on information below, this amount represents net adjustment to net
income from Income Statement section only to be shown on related SCF.
Comparative Balance Sheet
20x2 20x1 Diff.
Cash
14
3
11
Accounts Receivable(net)
33
24
9
Merchandise Inventory
24
12
12
Prepaid Expenses
5
7
(2)
Long term Investments
105
120
(15)
Land
180
180
0
Building (net)
174
180
(6)
Equipment (net)
150
60
90
Total Assets
685
586
99
Accounts Payable
Accrued Liabilities
Income Tax Payable
Bonds Payable
Total Liabilities
16
9
11
270
306
19
6
9
210
244
(3)
3
2
60
62
Common Stock
Retained Earnings
Total Stockholder's Equity
Total Liabilities and Equity
246
133
379
685
246
96
342
586
0
37
37
99
Income Statement
For Year ended 12/31/20x2
Net Sales
450
Cost of Goods Sold
-228
Gross Margin
222
Operating Exp.(Dep. Exp.of 12)
-90
Operating Income
132
Other Income (Expenses):
Interest Expense
(54)
Interest Income
6
Dividend Income
6
Gain on Disposal of Equip.
12
Loss on Sale of Investment
(15)
-45
Income before Income Taxes
87
Income Tax Expense
-30
Net Income
57
Additional Information:
Sold Investments (BV of 30) for 15
Purchased Investments for 15
Sold Equipment (BV of 30) for 42
Purchased Equipment for 126
Issued bonds for 60; Paid 20 in dividends;
A: What is $15 [12(Dep)+15(Loss)-12(Gain)]?
Docseda
SCF Indirect
400
Based on info below, this amount represents net adjustment to net income from
Current Asset & Current Liability section to be shown on related SCF.
Compa ra tive Ba la nce She e t
20x 2 20x 1 Diff.
Cash
14
3
11
Accounts Receivable(net)
33
24
9
Merchandise Inventory
24
12
12
Prepaid Expenses
5
7
(2)
Long term Investments
105
120
(15)
Land
180
180
0
Building (net)
174
180
(6)
Equipment (net)
150
60
90
Total Assets
685
586
99
Accounts Payable
Accrued Liabilities
Income Tax Payable
Bonds Payable
Total Liabilities
16
9
11
270
306
19
6
9
210
244
(3)
3
2
60
62
Common Stock
Retained Earnings
Total Stockholder's Equity
Total Liabilities and Equity
246
133
379
685
246
96
342
586
0
37
37
99
Income Sta te me nt
For Ye a r e nde d 12/31/20x 2
Net Sales
450
Cost of Goods Sold
-228
Gross Margin
222
Operating Exp.(Dep. Exp.of 12)
-90
Operating Income
132
Other Income (Expenses):
Interest Expense
(54)
Interest Income
6
Dividend Income
6
Gain on Disposal of Equip.
12
Loss on Sale of Investment
(15)
-45
Income before Income Taxes
87
Income Tax Expense
-30
Net Income
57
Additiona l Informa tion:
Sold Investments (BV of 30) for 15
Purchased Investments for 15
Sold Equipment (BV of 30) for 42
Purchased Equipment for 126
Issued bonds for 60; Paid 20 in dividends;
A:What is ($17)[-9(AR)-12(Inv)+2(PP)-3(AP)+3(Liab) +2(ITP)]?
Docseda
SCF Indirect
500
Based on information below, this amount represents net cash inflow
(outflow) from operating activities to be shown on related SCF.
Comparative Balance Sheet
20x2 20x1 Diff.
Cash
14
3
11
Accounts Receivable(net)
33
24
9
Merchandise Inventory
24
12
12
Prepaid Expenses
5
7
(2)
Long term Investments
105
120
(15)
Land
180
180
0
Building (net)
174
180
(6)
Equipment (net)
150
60
90
Total Assets
685
586
99
Accounts Payable
Accrued Liabilities
Income Tax Payable
Bonds Payable
Total Liabilities
16
9
11
270
306
19
6
9
210
244
(3)
3
2
60
62
Common Stock
Retained Earnings
Total Stockholder's Equity
Total Liabilities and Equity
246
133
379
685
246
96
342
586
0
37
37
99
Income Statement
For Year ended 12/31/20x2
Net Sales
450
Cost of Goods Sold
-228
Gross Margin
222
Operating Exp.(Dep. Exp.of 12)
-90
Operating Income
132
Other Income (Expenses):
Interest Expense
(54)
Interest Income
6
Dividend Income
6
Gain on Disposal of Equip.
12
Loss on Sale of Investment
(15)
-45
Income before Income Taxes
87
Income Tax Expense
-30
Net Income
57
Additional Information:
Sold Investments (BV of 30) for 15
Purchased Investments for 15
Sold Equipment (BV of 30) for 42
Purchased Equipment for 126
Issued bonds for 60; Paid 20 in dividends;
A: What is $55 [57+12(Dep)-12(Gain)+15(Loss)-9(AR)-12
(Inv)+2(PP)-3(AP)+3(Liab)-2(ITP)]?
Docseda
SCF Direct
100
Based on information below, this amount represents cash receipts from
sales to be shown on related SCF.
Comparative Balance Sheet
20x2 20x1 Diff.
Cash
14
3
11
Accounts Receivable(net)
33
24
9
Merchandise Inventory
24
12
12
Prepaid Expenses
5
7
(2)
Long term Investments
105
120
(15)
Land
180
180
0
Building (net)
174
180
(6)
Equipment (net)
150
60
90
Total Assets
685
586
99
Accounts Payable
Accrued Liabilities
Income Tax Payable
Bonds Payable
Total Liabilities
16
9
11
270
306
19
6
9
210
244
(3)
3
2
60
62
Common Stock
Retained Earnings
Total Stockholder's Equity
Total Liabilities and Equity
246
133
379
685
246
96
342
586
0
37
37
99
Income Statement
For Year ended 12/31/20x2
Net Sales
450
Cost of Goods Sold
-228
Gross Margin
222
Operating Exp.(Dep. Exp.of 12)
-90
Operating Income
132
Other Income (Expenses):
Interest Expense
(54)
Interest Income
6
Dividend Income
6
Gain on Disposal of Equip.
12
Loss on Sale of Investment
(15)
-45
Income before Income Taxes
87
Income Tax Expense
-30
Net Income
57
Additional Information:
Sold Investments (BV of 30) for 15
Purchased Investments for 15
Sold Equipment (BV of 30) for 42
Purchased Equipment for 126
Issued bonds for 60; Paid 20 in dividends;
A: What is $441 [450-9(AR)]?
Docseda
SCF Direct
200
Based on information below, this amount represents cash receipts from interest
and dividend income to be shown on related SCF.
Comparative Balance Sheet
20x2 20x1 Diff.
Cash
14
3
11
Accounts Receivable(net)
33
24
9
Merchandise Inventory
24
12
12
Prepaid Expenses
5
7
(2)
Long term Investments
105
120
(15)
Land
180
180
0
Building (net)
174
180
(6)
Equipment (net)
150
60
90
Total Assets
685
586
99
Accounts Payable
Accrued Liabilities
Income Tax Payable
Bonds Payable
Total Liabilities
16
9
11
270
306
19
6
9
210
244
(3)
3
2
60
62
Common Stock
Retained Earnings
Total Stockholder's Equity
Total Liabilities and Equity
246
133
379
685
246
96
342
586
0
37
37
99
A: What is $12 [6(Int)+6(Div)]?
Docseda
Income Statement
For Year ended 12/31/20x2
Net Sales
450
Cost of Goods Sold
-228
Gross Margin
222
Operating Exp.(Dep. Exp.of 12)
-90
Operating Income
132
Other Income (Expenses):
Interest Expense
(54)
Interest Income
6
Dividend Income
6
Gain on Disposal of Equip.
12
Loss on Sale of Investment
(15)
-45
Income before Income Taxes
87
Income Tax Expense
-30
Net Income
57
Additional Information:
Sold Investments (BV of 30) for 15
Purchased Investments for 15
Sold Equipment (BV of 30) for 42
Purchased Equipment for 126
Issued bonds for 60; Paid 20 in dividends;
SCF Direct
300
Based on information below, this amount represents cash payments for
operating expenses and other interest expense to be shown on related SCF.
Compa ra tive Ba la nce She e t
20x 2 20x 1 Diff.
Cash
14
3
11
Accounts Receivable(net)
33
24
9
Merchandise Inventory
24
12
12
Prepaid Expenses
5
7
(2)
Long term Investments
105
120
(15)
Land
180
180
0
Building (net)
174
180
(6)
Equipment (net)
150
60
90
Total Assets
685
586
99
Accounts Payable
Accrued Liabilities
Income Tax Payable
Bonds Payable
Total Liabilities
16
9
11
270
306
19
6
9
210
244
(3)
3
2
60
62
Common Stock
Retained Earnings
Total Stockholder's Equity
Total Liabilities and Equity
246
133
379
685
246
96
342
586
0
37
37
99
Income Sta te me nt
For Ye a r e nde d 12/31/20x 2
Net Sales
450
Cost of Goods Sold
-228
Gross Margin
222
Operating Exp.(Dep. Exp.of 12)
-90
Operating Income
132
Other Income (Expenses):
Interest Expense
(54)
Interest Income
6
Dividend Income
6
Gain on Disposal of Equip.
12
Loss on Sale of Investment
(15)
-45
Income before Income Taxes
87
Income Tax Expense
-30
Net Income
57
Additiona l Informa tion:
Sold Investments (BV of 30) for 15
Purchased Investments for 15
Sold Equipment (BV of 30) for 42
Purchased Equipment for 126
Issued bonds for 60; Paid 20 in dividends;
A: What is $128 [90-12(Dep)-3(Liab)-2(PP)] ?
Docseda
SCF Direct
400
Based on information below, this amount represents cash payments for
income taxes to be shown on related SCF.
Comparative Balance Sheet
20x2 20x1 Diff.
Cash
14
3
11
Accounts Receivable(net)
33
24
9
Merchandise Inventory
24
12
12
Prepaid Expenses
5
7
(2)
Long term Investments
105
120
(15)
Land
180
180
0
Building (net)
174
180
(6)
Equipment (net)
150
60
90
Total Assets
685
586
99
Accounts Payable
Accrued Liabilities
Income Tax Payable
Bonds Payable
Total Liabilities
16
9
11
270
306
19
6
9
210
244
(3)
3
2
60
62
Common Stock
Retained Earnings
Total Stockholder's Equity
Total Liabilities and Equity
246
133
379
685
246
96
342
586
0
37
37
99
A: What is $28 [30-2(ITP)]?
Docseda
Income Statement
For Year ended 12/31/20x2
Net Sales
450
Cost of Goods Sold
-228
Gross Margin
222
Operating Exp.(Dep. Exp.of 12)
-90
Operating Income
132
Other Income (Expenses):
Interest Expense
(54)
Interest Income
6
Dividend Income
6
Gain on Disposal of Equip.
12
Loss on Sale of Investment
(15)
-45
Income before Income Taxes
87
Income Tax Expense
-30
Net Income
57
Additional Information:
Sold Investments (BV of 30) for 15
Purchased Investments for 15
Sold Equipment (BV of 30) for 42
Purchased Equipment for 126
Issued bonds for 60; Paid 20 in dividends;
SCF Direct
500
Based on information below, this amount represents cash payments for inventory
purchases to be shown on related SCF.
Compa ra tive Ba la nce She e t
20x 2 20x 1 Diff.
Cash
14
3
11
Accounts Receivable(net)
33
24
9
Merchandise Inventory
24
12
12
Prepaid Expenses
5
7
(2)
Long term Investments
105
120
(15)
Land
180
180
0
Building (net)
174
180
(6)
Equipment (net)
150
60
90
Total Assets
685
586
99
Accounts Payable
Accrued Liabilities
Income Tax Payable
Bonds Payable
Total Liabilities
16
9
11
270
306
19
6
9
210
244
(3)
3
2
60
62
Common Stock
Retained Earnings
Total Stockholder's Equity
Total Liabilities and Equity
246
133
379
685
246
96
342
586
0
37
37
99
Income Sta te me nt
For Ye a r e nde d 12/31/20x 2
Net Sales
450
Cost of Goods Sold
-228
Gross Margin
222
Operating Exp.(Dep. Exp.of 12)
-90
Operating Income
132
Other Income (Expenses):
Interest Expense
(54)
Interest Income
6
Dividend Income
6
Gain on Disposal of Equip.
12
Loss on Sale of Investment
(15)
-45
Income before Income Taxes
87
Income Tax Expense
-30
Net Income
57
Additiona l Informa tion:
Sold Investments (BV of 30) for 15
Purchased Investments for 15
Sold Equipment (BV of 30) for 42
Purchased Equipment for 126
Issued bonds for 60; Paid 20 in dividends;
A: What is $243 [ 228+12(Inv)+3(AP)]?
Docseda