Question

23) Which of the following would be reported in the cash flow from financing activities section of a of cash flows? 23) A) Paid cash for dividends B) Sold land for cash C) Paying cash for dividends and receiving cash from common stock D) Received cash for common stock 24) Mayberry Company paid $30,000 cash to purchase land. What happened as a result of this business event 24) A) Total equity was not affected. B) Total assets were not affected. C) The net cash flow from investing activities decreased. D) Total assets and tota I equity were not affected, and net cash flow from investing activities decreased. ason Company had $500 cash. During Year 2, Mason earned $1,200 of ca 25) As of December 31, Year 1, M at the end of Year 2? 25) A) $1,700 B) $900 C) $2,500 I revenue and paid $800 of cash expenses. What is the amount of cash that will be reported on the balance she D) $400 Jackson Company paid $500 cash for salary expenses. Which of the following accurately reflects how t Stmt of Net Inc.Cash Flows AssetsLiab. Equity Rev A. NA500(500) NA B. (500) C. (500) D. (500) NA 500 (500) 500 NA NA (500) OA 500(500) (500) IA D) Option D NA (500) NA (500) (500) OA 15 NA(500) NA A) Option A B) Option B C) Option C 27) Garrison Company acquired $23,000 by issuing common stock. Which of the following accurately refle how this event affects the company's financial statements? Stmt of quly -Exp. Net Inc.Cash Flows The NA 23,000 A. 23,000 em 2,0 he f A. 23,000NA +23,000 NA FA 23,000 23,000 000FA B. 23,000NA23,000 23,000 ) Ba cu 123,000 23,000 NA 23,000 NA NA NA 23,000NA23,000 NA FA OA D. 23,00023,000 A) Option A B) Option B C) Option C D) Option D

Answer 1

Answer 23

Payment of Dividend is reported as Cash from financing activities. Hence Answer is Option A: paid cash for dividend

Answer 24

Cash paid for purchase of land will reduce cash but increase fixed assets, hence the total assets remain unchanged. No impact of this transaction on Equity. The same is shown as cash out flow in Investing activities. Hence Answer is option D: Total assets and total equity were unaffected and net cash flows from investing activities decreased.

Answer 25

Ending Balance=Beginning balance + earned -paid

= 500+1200-800 = $ 900 i.e option B

Answer 26

Cash salary expense decreases asset (cash), reported as expense, decreases net income, decrease equity, reported as operating activity in cash flows. Hence, answer is option B .

Answer 27

Issue of common stock increases cash, increases Equity and is reported as financing activity in cash floes. Hence answer is option A.