Question

Question 1

1. Which of the following would be classified as an operating activity on a statement of cash flows?

   		Collections from customers
   		Receipt of loan repayments
   		Issuing stock
   		Repayment of amounts borrowed
   		Issuing bonds

1 points

Question 2

1. Which of the following transactions increase cash?
   1. Sales of goods and services for cash
   2. Receiving cash dividends
   3. Collection of accounts receivable
   4. Reclassifying long-term debt to short-term debt
   5. Accruing interest revenue

   		1 and 2
   		1 and 3
   		1, 2, and 3
   		1, 2, 3, and 5
   		1, 2, 3, and 4

1 points

Question 3

1. The indirect method and the direct method of preparing the statement of cash flows

   		always produce the same totals.
   		both show reasons for the changes in the cash account.
   		rearranges the total columns, but otherwise the format is the same.
   		lists all changes in cash.
   		produce the same totals when cash inflows from operating activities equals cash outflows from financing activities.

1 points

Question 4

1. All of the following would be included in a company's operating activities except

   		dividend payments.
   		interest and dividends collected.
   		income tax payments.
   		cash payments to suppliers.
   		collections from customers.

Answer 1

1	Collections from customers
	Explanation: Others are financing activities
2	1, 2, and 3
3	always produce the same totals.
4	dividend payments.
	Explanation: It is a financing activity