Question 1

Which financial statement separates business activities into operating,investing and financing activities?

Accepted Answer

A)  Statement of Stockholders' Equity
B)  Income Statement
C)  Statement of Cash FlowsD) All of the above
E) B) and C)

Question 2

Which of the following is an example of a cash inflow from a financing activity?

Accepted Answer

A)  Issuance of bonds.
B)  Sale of an intangible asset.
C)  Receipt of cash dividends.D) A) and B)
E) A) and C)

Question 3

We record dividends received as a financing activity.We record dividends received as an operating activity.

Accepted Answer

A) True 
 B)False

Question 4

A company had the following cash flows for the year: 
(a) Purchased land,$60,000
(b) Borrowed from a local bank,$100,000
(c) Paid employee salaries,$50,000
(d) Issued common stock,$75,000
(e) Paid dividends,$20,000
(f) Sold equipment,$40,000
(g) Sold services to customers,$120,000
What amount would be reported for net investing cash flows on the Statement of Cash Flows?

Accepted Answer

A)  ($20,000) .
B)  $70,000.
C)  $155,000.D) B) and C)
E) None of the above

Question 5

The collection of cash from customers would be classified as which type of cash flow on the Statement of Cash Flows?

Accepted Answer

A)  Financing.
B)  Investing.
C)  Operating.D) A) and B)
E) A) and C)

Question 6

Which of the following items is not reported in the operating section of the statement of cash flows using the direct method?

Accepted Answer

A)  Depreciation expense.
B)  Cash paid to suppliers.
C)  Cash received from customers.D) All of the above
E) B) and C)

Question 7

Using the direct method we adjust the items in the income statement to directly show the cash inflows and outflows from operations.

Accepted Answer

A) True 
 B)False

Exam 11: Statement of Cash Flows

The collection of cash from customers would be classified as which type of cash flow on the Statement of Cash Flows?

Correct Answer
verified

We record dividends received as a financing activity.We record dividends received as an operating activity.

Correct Answer
verified

Which of the following is an example of a cash inflow from a financing activity?

Correct Answer
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Correct Answer
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Which of the following items is not reported in the operating section of the statement of cash flows using the direct method?

Correct Answer
verified

Which financial statement separates business activities into operating,investing and financing activities?

Correct Answer
verified

Using the direct method we adjust the items in the income statement to directly show the cash inflows and outflows from operations.

Correct Answer
verified

Exam 11: Statement of Cash Flows

The collection of cash from customers would be classified as which type of cash flow on the Statement of Cash Flows?

Correct AnswerverifiedShow Answer

We record dividends received as a financing activity.We record dividends received as an operating activity.

Correct AnswerverifiedShow Answer

Which of the following is an example of a cash inflow from a financing activity?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following items is not reported in the operating section of the statement of cash flows using the direct method?

Correct AnswerverifiedShow Answer

Which financial statement separates business activities into operating,investing and financing activities?

Correct AnswerverifiedShow Answer

Using the direct method we adjust the items in the income statement to directly show the cash inflows and outflows from operations.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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