Question

César A. Martinan Prof. Arritola Managerial Test 1 - Ch. 13 - Statement of Cash Flows Multiple Choice wer the question Identify the choice that best completes the statement or 1. Which of the following concepts of cash is not appropriate to use in preparing the statement of cash flow? a cash cash and money market funds c. cash and cash equivalents d. cash and U.S. treasury bonds 2. Which of the following can be found on the statement of cash flows? a cash flows from operating activities b. total assets c. total changes in stockholders' equity d. changes in retained carnings 3. On the statement of cash flows, the cash flows from operating activities section would include a receipts from the issuance of capital stock b. receipts from the sale of investments c payments for the acquisition of investments d. cash receipts from sales activities 4. Preferred stock issued in exchange for land would be reported in the statement of cash flows 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 5. Cash paid to purchase long-term investments would be reported in the statement of cash flows in a. the cash flows from operating activities section b. the cash flows from financing activities section c. the cash flows from investing activities section d. a separate schedule 6. Which of the following does not represent an outflow of cash and therefore would not be reported on the statement of cash flows as a use of cash? a. purchase of noncurrent assets b. purchase of treasury stock c. discarding an asset that had been fully depreciated d. payment of cash dividends 7. Which of the following represents an inflow of cash and therefore would be reported on the statement of cas flows? a. retirement of bond payable b. acquisition of treasury stock c. declaration of stock dividends d. issuance of long-term debt 8. A fen-year bond was issued at par for $250,000 cash. This transaction should be shown on a statement of cash flows under a investing activities b. financing activities c. noncash investing and financing activities d. operating activities

Answer 1

Ans :

1. Option D, cash and us treasury bonds.

cash and us treasury bonds.does not form part of cash flow statement.

2. Option A, cash flow from operating activity.

Cash flow statement consists of cash flow from operating activity , cash flow from investing activity and cash flow from financing activity

3. Option D, cash receipts from sale activities.

4. Option C , a separate schedule

5. Option C, cash flow from investing activity

6. option C, Discarding an asset that had been fully depreciated.

7. Option D, Issuance of long term debt.

8. Option B, financing activity