The document is a test completion report that provides details of Ashan Silva's completion of the FFAC Chapter 7 test, including a score of 17 out of 20 (85%), a time spent of 1 hour and 24 minutes, and a result of "Passed". It then lists the 20 questions on the test with the assigned score or result for each question.

1. Learner: Ashan Silva
Test Name FFAC Chapter 7 Completion Date 2015-03-05T10:15:59
Score 17.0 of 20.0 (85.00%) Timespent 01:24:10
Result Passed
Question Result / Notes
Order Name Score Notes
1 The following transactions appear in Mike
Company’s Statement of Cash Flows for the
current year:
Bought new machinery to automate folding
sheets, financing information below:
Mike Company’s Statement of Cash
Flows will reflect cash flows from financing
due to
1.0
2 The following items appear on XYZ
Company's Income Statement and Balance
Sheet for the year ending 20X1:
Gain on sale of plant assets
Dividend revenue from available-for-sale
securities
Interest revenue
Depreciation expense
Common stock issued to retire bonds
Purchase of treasury stock
Which of the following line items in XYZ
Company's Statement of Cash Flows will
not correctly reconcile net income to net
increase/decrease in cash for the year
ended 20X1?
1.0
3 The following information is derived from C
Company’s Income Statements for the
years ending 20X0 and 20X1, and Balance
Sheets as of December 31st, 20X0 and
20X1:
The marketable securities (cash
equivalents) were sold for $1,500M in 20X1.
The company is using end-of-year
convention for depreciation. A new plant
and equipment were purchased during the
end of 20X1.
Based on the above information and with
no other information available:
What is the total of cash provided from
investing activities for the year ending
December 31st, 20X1?
0.0
4 BMC, Inc. declared cash dividends totaling
$160,000. The balance sheet indicates
dividends payable of $48,000 at the
beginning of the year and $36,000 at the
end of the year. Dividends paid to the
stockholders were
1.0
Question Notes
Printed on: 3/5/2015

2. Order Name Score Notes
5 The following information is derived from C
Company’s Income Statements for the
years ending 20X0 and 20X1, and Balance
Sheets as of December 31st, 20X0 and
20X1:
The marketable securities (cash
equivalents) were sold for $1,500M in 20X1.
The company is using end-of-year
convention for depreciation. A new plant
and equipment were purchased during the
end of 20X1.
Based on the above information and with
no other information available:
What is the impact of the gain on sale of
marketable securities in 20X1 to the net
cash change for the year ending December
31st, 20X1 if the indirect method has been
applied?
1.0
6 Gamma Corporation purchased land for
$210,000 during 2012. Later in the year it
sold land with a book value of $120,000 for
$100,000. How will these two transactions
affect the cash flow from investing
activities?
1.0
7 The following are Jupi Company’s Balance
Sheet line items for 12/31/2010 and
12/31/2011:  Provided no other
information is available, and based on the
previous information, how did the cash
balance of Jupi Company change for the
year ending December 31st, 2011?
1.0
8 In a cash flow statement prepared under the
direct method, the issuance of 1,000 shares
of common stock will be shown as an
1.0
9 Matlox, Inc. purchased equipment on
January 1st, Year 1 for $800,000. The
equipment was depreciated assuming a 10-
year useful life and no salvage value. On
December 31st, Year 4, the equipment was
sold at a loss of $80,000. The effect of this
transaction on the investing section of the
cash flow statement prepared under the
direct method will be to
1.0
10 The following information is derived from C
Company’s Income Statements for the
years ending 20X0 and 20X1, and Balance
Sheets as of December 31st, 20X0 and
20X1:
The marketable securities (cash
equivalents) were sold for $1,500M in 20X1.
The company is using end-of-year
convention for depreciation. A new plant
and equipment were purchased during the
end of 20X1.
Based on the above information and with
no other information available:
What is the net cash provided by operating
activities for the year ending December
31st, 20X1 if the indirect method is applied?
1.0
Question Notes
Printed on: 3/5/2015

3. Order Name Score Notes
11 Jupi Company’s selected operations during
the current year appear below:
Bought new machinery to automate folding
sheets, financing information below:
The cash outflow from investing activities
would be
1.0
12 The following information is derived from C
Company’s Income Statements for the
years ending 20X0 and 20X1, and Balance
Sheets as of December 31st, 20X0 and
20X1:
The marketable securities (cash
equivalents) were sold for $1,500M in 20X1.
The company is using end-of-year
convention for depreciation. A new plant
and equipment were purchased during the
end of 20X1.
Based on the above information and with
no other information available:
What is the amount of net cash used for
investing activities in 20X1?
0.0
13 In a cash flow statement prepared under
indirect method, an increase in accounts
receivable balance from the beginning of the
year to the end would be shown as a(n)
1.0
14 Jupi Company’s selected operations during
the current year appear below:
Bought new machinery to automate folding
sheets, financing information below:
The net cash provided by investing
activities would be
0.0
15 Lifeplex Gym reported an insurance
expense of $36,000 on its income statement
for Year 1. On its comparative balance
sheet, the pre-paid insurance amount was
$16,000 at the beginning of the year and
$22,000 at the end of Year 1. Cash paid
towards insurance premiums during Year 1
was
1.0
16 Operating activities in the statement of cash
flows include which activity below?
1.0
17 Terrier Company issued $150,000 bonds
and paid cash dividends of $40,000. The net
cash provided by financing activities was
1.0
18 In a cash flow statement prepared under the
indirect method, a decrease in inventory
balance from the beginning of the year to
the end of the year would be shown as a(n)
1.0
19 King's Dry Cleaners reported total sales of
$650,000. The accounts receivable balance
increased $32,000 during the period. The
amount of cash received from customers
was
1.0
20 The indirect method of reporting cash flows
is the most commonly used method of
reporting cash flows. It starts with reporting
cash receipts and cash payments in the
operating activities section.
1.0
Question Notes
Printed on: 3/5/2015