Multiple Choice Questions 1. Which of the following items would not be included in the operating activities

Question:

Multiple Choice Questions
1. Which of the following items would not be included in the operating activities section of an entity€™s statement of cash flows under U. S. GAAP?
a. Interest received
b. Proceeds from the sale of trading securities
c. Dividends paid
d. Income taxes paid.
2. Kong Co. purchased a three- month U. S. Treasury bill. Kong€™s policy is to treat as cash equivalents all highly liquid investments with an original of three months or less when purchased. How should this purchase be reported in Kong€™s statement of cash flows?
a. As an outflow from operating activities.
b. As an inflow from investing activities.
c. As an outflow from financing activities.
d. Not reported. .
3. Bales Company is preparing a statement of cash flows. Which of the following would be shown on the statement?
a. Stock dividend
b. Stock split
c. Appropriation of retained earnings
d. None of the answer choices are correct
4. On its current year income statement, Vegas Parties, Inc. reported sales revenue of $ 945,000. Changes occurred in several accounts, including the following:

What amount should Vegas report as cash received from customers in its current year statement of cash flows prepared using the direct method?
a. $ 780,000
b. $ 930,000
c. $ 960,000
d. $ 1,110,000

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