Question

Which of the following is reported as an investing activity in the statement of cash flows?

Multiple Choice

• The receipt of dividend revenue.

• The payment of cash dividends.

• The sale of machinery.

• The payment of interest on bonds.

A firm reported salaries expense of $244,000 for the current year. The beginning and ending balances in salaries payable were $42,000 and $12,000, respectively. What was the amount of cash paid for salaries?

Multiple Choice

• $244,000.

• $274,000.

• $298,000.

• $214,000.

Cash flows from investing activities do not include cash payments to:

Multiple Choice

• purchase securities of another company.

• buy land.

• repay debt.

• acquire equipment.

Interest payments to creditors are reported in a statement of cash flows as:

Multiple Choice

• A borrowing activity.

• An operating activity.

• An investing activity.

• A financing activity.

Which of the following is not required by generally accepted accounting principles?

Multiple Choice

• Cash flow per share.

• Disclosure notes.

• Statement of cash flows.

• Earnings per share.

Answer 1

1

The sale of machinery is an investing activity in the statement of cash flows.

Option C is correct

2

Amount of cash paid for salaries = 244000+42000-12000 = $274,000

Option B is correct

3

Cash flows from investing activities do not include cash payments to repay debt.

Cash payment to repay debt is Financing activity.

Option C is correct

4

Interest payments to creditors are reported in a statement of cash flows as An operating activity.

Option B is correct

5

Cash flow per share is not required by generally accepted accounting principles.

Option A is correct