Question
29. Which of the following is an investing activity Obtaining a loan in cash. Issuing bonds for cash Issuing a loan in cash Receiving a
29. Which of the following is an investing activity
Obtaining a loan in cash.
Issuing bonds for cash
Issuing a loan in cash
Receiving a dividend from your investment in another company.
30.
When preparing a Statement of Cash Flows under the indirect method, how does a company account for depreciation expense?
It deducts the depreciation expense for the period from the operating section
It does not make any adjustments for depreciation expense for the period.
It deducts the depreciation expense for the period from the investing section
It adds the depreciation expense for the period to the investing section.
It adds the depreciation expense for the period to the operating section.
31. Marshall Company issued $250,000 stock in exchange for a piece of land. How would Marshall report this transaction on the Statement of Cash Flows?
As a cash outflow for investing activities
As a cash inflow for financing activities
This transaction would not be reported on the Statement of Cash Flows.
Half of the amount would be reported as a cash inflow for financing activities and half would be reported as a cash outflow for investing activities.
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