ACG 2021; Questions & Answers 100% Correct
Name the Cash Flows:
1.) Cash receipts from sales
2) Cash payments for inventories
3) Lending to others
4) Cash payments of dividends
5) Cash receipts from dividends
6) Cash receipts from borrowing money
7) Cash payments for inventories
8) Cash receipts from stock
9) Cash payments for salaries
10) Collecting loans
11) Cash payments for longterm assets
12) Repaying debt
13) Cash payments for interest
14) Cash payments for expenses
15) Cash receipts from selling long term assets CORRECT ANSWER-1.) Operating
2) Operating
3) Investing
4) Financial
5) Operating
6) Financial
7) Operating
, ACG 2021; Questions & Answers 100% Correct
8) Financial
9) Operating
10) Investing
11) Investing
12) Financial
13) Operating
14) Operating
15) Investing
What is the net cash flow from financing activities:
-Dividends declared, $7 mil
-Dividends paid out to stockholders, $15 mil
-Issued stock for $80 million
-Paid cash to suppliers, $15 million
-Bought equipment for, $50 million
-Paid bank loan for, $20 million plus $2 million of interest CORRECT ANSWER-Net cash
inflow of $45 million
Transaction: RWS is started when it receives cash of $5,000 from investors in exchange for
common stock CORRECT ANSWER-Debit: Cash, $5,000
Credit: Common Stock, $5,000
Cash Flow: 5,000, FINANCIAL
, ACG 2021; Questions & Answers 100% Correct
Transaction: RWS borrows $1,000 from Ginger CORRECT ANSWER-Debit: Cash, $1,000
Cr. Notes Payable, $1,000
Cash Flow: 1,000, FINANCIAL
Transaction: RWS recommends a beautiful Bordeaux, charges $300 CORRECT ANSWER-
Debit: Cash, $300
Credit: Service Revenue, $300
Cash Flow: 300, OPERATING
Transaction: RWS pays utility bill for 100 CORRECT ANSWER-Debit: Utilities Expense,
$100
Credit: Cash, $100
Cash Flow: (100), OPERATING
Transaction: Gives seminar on the wines of Spain, receives $2,000 cash CORRECT
ANSWER-Debit: Cash, $2,000
Credit: Service Revenue, $2,000
Cash Flow: 2,000, OPERATING
Transaction: Purchases inventory, 200 bottles of wine at $5 each, on account CORRECT
ANSWER-Debit: Inventory, $1,000
, ACG 2021; Questions & Answers 100% Correct
Credit: Accounts Payable, $1,000
Cash Flow: --
Transaction: Provides service, charges $350. Customer says she will return next month to pay
CORRECT ANSWER-Debit: Accounts Receivable, $350
Credit: Service Revenue, $350
Cash Flow: --
Transaction: Has broken window repaired for $150. $100 cash, $50 on account CORRECT
ANSWER-Debit: Repairs Expense, $150
Credit: Cash, $100
Credit: Accounts Payable, $50
Cash Flow: (100) OPERATING
Transaction: Pays vendor for inventory purchased on Feb 7 ($1,000 worth) CORRECT
ANSWER-Debit: Accounts Payable, $1,000
Credit: Cash, $1,000
Cash Flow: (1,000) OPERATING
Transaction: Sells 150 bottles of Brunello di Montalcino for cash (initially purcahsed at $5 each)
for $15 each CORRECT ANSWER-Debit: Cash, $2,250
Credit: Sales Revenue, $2,250
