Question

On the Statement of Cash Flows, cash receipts from the sale of common stock of your company to investors are reported in the operating activities section. O investing activities section. financing activities section. O schedule of noncash investing and financing activities. Question 29 (2 points) On the statement of cash flows using the indirect method, patent amortization expense will O be added to net income in the operating section. be deducted from net income in the operating section. appear as an inflow of cash in the investing section. O appear as an outflow of cash in the investing section Question 30 (2 points) On the Statement of Cash Flows, cash receipts from the sale of goods and services are reported in the O operating activities section. investing activities section. financing activities section. O schedule of noncash investing and financing activities. Question 31 (2 points) You are a supplier considering a sale to a business on credit. You want that business's current cash debt coverage ratio to be

Answer 1

Question 28

Correct answer-----financing activities section.

Cash received from investors or lenders report in the financing section of the cash flow statement. Although if shares are issued in exchange for anything other than cash it will be reported on schedule of non cash investing and financing activities.

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Question 29

Correct answer-----be added to net income in operating section.

. Attend amortisation is an non cash expense hence it is added to operating income to get operating cash flow.

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Question 30

Correct answer-----operating activities section.

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Sale and purchase of goods and services is an operating activity has cash received from sale of goods and services reported on the operating section of cash flow statement.