Cash flows from investing activities do not include:
A) Borrowing.
B) The purchase of equipment.
C) The sale of land.
D) The purchase of a building.
Answer: Borrowing.
Saturday, October 10, 2020
Investing cash flows would include which of the following?
Investing cash flows would include which of the following?
A) Payment of cash dividends to stockholders.
B) Purchase of office supplies with cash.
C) Purchase of a building with cash.
D) Cash sales to customers.
Answer: Purchase of a building with cash.
How many of these cash flow items involve financing activities?
Purchase equipment to be used in operations.
Consider the following cash flow items:
Pay amount owed to bank for previous borrowing.
Pay utility costs.
Purchase equipment to be used in operations.
Purchase office supplies.
Purchase one year of rent in advance.
Pay workers' salaries.
Pay for research and development costs.
Pay taxes to the IRS.
Sell common stock to investors.
How many of these cash flow items involve financing activities?
A) Zero.
B) One.
C) Two.
D) Three.
Answer: Two.
How many of these cash flow items involve investing activities?
Consider the following cash flow items:
Pay amount owed to bank for previous borrowing.
Pay utility costs.
Purchase equipment to be used in operations.
Purchase office supplies.
Pay one year of rent in advance.
Pay workers' salaries.
Pay for research and development costs.
Pay taxes to the IRS.
Sell common stock to investors.
How many of these cash flow items involve investing activities?
A) Zero.
B) One.
C) Two.
D) Three.
Answer: One.
Which of the following is NOT correct regarding the reporting of cash?
Which of the following is NOT correct regarding the reporting of cash?
A) Cash is reported in both the balance sheet and the statement of cash flows.
B) Cash flows from buying and selling investments and long-term productive assets are called operating cash flows.
C) Cash flows from transactions with stockholders and creditors are called financing cash flows.
D) Net cash flows reported in the statement of cash flows should equal the change in cash reported in the balance sheet.
Answer: Cash flows from buying and selling investments and long-term productive assets are called operating cash flows.
Cash flows from investing do not include cash flows from:
Cash flows from investing do not include cash flows from:
A) Lending.
B) The sale of equipment.
C) Borrowing.
D) The purchase of a building.
Answer: Borrowing.
Operating cash flows would exclude:
Operating cash flows would exclude:
A) Payment of employee salaries.
B) Receipt of cash from customers.
C) Payment of dividends.
D) Payment for advertising.
Answer: Payment of dividends.
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