1. (TCO 8) Which is reported as an operating activity in the statement of cash flows? (Points : 4) The purchase of long-lived assets The acquisition of treasury stock The retirement of bonds The payment of prepaid insurance

Question 2. 2. (TCO 8) Cash paid to suppliers under the direct method is computed as (Points : 4)

cost of goods sold plus a decrease in inventory and minus an increase in accounts payable. cost of goods sold plus an increase in inventory and minus an increase in accounts payable. cost of goods sold minus a decrease in inventory and plus an increase in accounts payable. cost of goods sold minus an increase in inventory and plus an increase in accounts

Question 3. 3. (TCO 8) Which does not represent a cash flow relating to operating activities? (Points : 4)

Cash dividends paid to stockholders Cash received from customers Interest paid to bondholders Cash paid for salaries

Question 4. 4. (TCO 8) A loss on the sale of machinery should be reported in the statement of cash flows as (Points : 4)

an adjustment to net income under the indirect method. an operating activity under the direct method. an investing activity cash outflow. a noncash investing activity.

Question 5. 5. (TCO 8) Each year, our company prepares a reconciliation schedule that compares its income statement with its statement of cash flows on both the direct and indirect method bases. In its 2013 income statement, our company reported $347,500 for service revenue earned from membership fees. Our company received $340,500 cash in advance from members during 2013. In its reconciliation schedule, it should (Points : 4)

show a $7,000 negative adjustment to net income under the indirect method for the increase in unearned revenue. show a $7,000 negative adjustment to net income under the indirect method for the decrease in unearned revenue. show a $7,000 positive adjustment to net income under the indirect method for the increase in unearned revenue. show a $7,000 positive adjustment to net income under the indirect method for the decrease in unearned revenue.

answer all 5 querstions with a b c d answers and ill give u thumbs up