1) Business activities that either generate or use cash are classified as operating, investing or financing activities on the statement of cash flow

a) true

b) false

2) Equipment costing $100k with accumulated depreciation of $40k is sold at a loss of $10k. this implies that $40k cash was received from the sale

a) true

b) false

3) The statement of cash flows is:

a) A financial statement that presents information about changs in equity duing a period

b) A financial statement that reports the cash inflows and outflows for an accounting period and that classifesed those cash lows as operating activities, investing activities or financing activtes

c) A financial statement that lists the type and amounts of assets, liabilities and equity of a business on a specific date

d) A financial statement that lists the type and amounts of the revenus and expense of a business for an accounting perod

4) The accountng records of Miller company provided the data below ($ in 000s). calculate net cash provided or used by operatin activities

net income $17,500

depreciation expense $8,400

increase in account receivable $4,400

decrease in inventory $6,400

decrease in prepaid insurance $1,500

decrease in salaries payable $2,700

increase in interest payable $900

a) $20,600

b) $27,600

c) $3,800

d) ($27,600)

e) $41,800