Question

Which of the following is a noncash investing and financing activity? payment of a cash dividend payment of a six-month note payable purchase of merchandise inventory on account d i nce of common stock to acquire Land 10. A company purchases equipement for $32,000 cash. This transaction should be shown on the statement of cash flows under a investing activities h financing activities C oncach investing and financing activities d. operating activities 11. Cash flow per share is a required to be reported on the balance sheet h required to be reported on the income statement c.required to be reported on the statement of cash flows d not required to be reported on any statement 12 The statement of cash flows is nor useful for a planning future investing and financing activities b determining a company's ability to pay its debts c. deformining a company's ability to pay dividends d. calculating the net worth of a company 13. Cash receipts received from the issuance of a mortgage notes payable would be classified as a investing activities. b. operating activities. c. cither financing or investing activities d. financing activities. 14. The order of presentation of activities on the statement of cash flows is a operating, investing, and financing. b. operating, financing, and investing. c. financing, operating, and investing. d. financing, investing, and operating. 15. Financing activities include a. lending money. b. acquiring investments. c. issuing debt. d. acquiring long-lived assets. 16. Cash receipts from interest and dividends are classified as a financing activities b. operating activities. c. investing activities. d. either financing or investing activities. 17. Depreciation on factory equipment would be reported in the statement of cash flows prepared by the indirect method in a. the cash flows from financing activities section b. the cash flows from investing activities section c. a separate schedule d. the cash flows from operating activities section 18. Which of the following should be added to net income in calculating net cash flow from operating activities using the indirect method? _

Answer 1

Answer 9) Option D (Issuance of common stock to acquire land)

Answer 10) Option A (Investing Activity)

Answer 11) Option D (As per US GAAP, cash flow per share is not required to be reported)

Answer 12) Option D (Calculating net worth of the company, as cash flow statement just reflects cash movements)

Answer 13) Option D (Financing activity)

Answer 14) Option A (Operating, Financing and Investing)

Answer 15) Option B (Issuing Debt)

Answer 16) Option B (Operating Activities)

Answer 17) Option D (in the cash flow from operating activities section)