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Cash Flows from Investing Activities would involve all of the following except: Select one: A. The receipt of interest income on short-term investments B. The


Cash Flows from Investing Activities would involve all of the following except: Select one: A. The receipt of interest income on short-term investments B. The purchase of marketable securities C. The purchase of buildings D. The proceeds from the sale of equipment 2.For which one of the following reasons might investors be interested in the extent to which earnings reoccur overtime? Select one: A. To determine market capitalization B. To identify unusual items in the balance sheet C. To determine if a company has effective cash management D. To predict future earnings 3.Free cash flow is measured using information from which financial statement? Select one: A. Statement of cash flow B. Balance sheet C. Statement of shareholders' equity D. Income statement 4.If a company uses the indirect method to calculate its operating cash flows: Select one: A. It will report the same amount of cash flow from operations on its statement of cash flow as it would if the direct method had been used B. It will report a smaller amount of net income than the amount reported for cash flow from operations C. It will report a larger amount of net income than cash flow from operations D. It will report the same amount of cash flow from operations on its statement of cash flow as its net income on its income statement 5.Proceeds from issuance of long-term debt would appear on the statement of cash flow as: Select one: A. Cash inflow from financing activities B. Cash inflow from investing activities C. Cash inflow from operating activities D. Cash inflow from borrowing activities 6.The cash flow activity category that is generally considered to be the best indicator of a company's ability to continue as a going concern is: Select one: A. The cash flow from financing activities B. It changes from year to year C. The cash flow from investing activities D. The cash flow from operating activities 7.The purchase of equipment by a business is an example of what type of business activity? Select one: A. Financing B. Marketing C. Investing D. Operating 8.The purchase of equipment is reported in the statement of cash flow as an: Select one: A. Outflow under investing activities B. Outflow under financing activities C. Inflow under financing activities D. Inflow under investing activities 9.The purchase of treasury stock would appear on the statement of cash flow as: Select one: A. Cash outflow from financing activities B. Cash outflow from borrowing activities C. Cash outflow from operating activities D. Cash outflow from investing activities 10.The sale of manufactured goods by a business is an example of what type of business activity? Select one: A. Investing B. Operating C. Marketing D. Financing 11.The sale of stock in a business is an example of what type of business activity? Select one: A. Operating B. Marketing C. Financing D. investing 12.The Three Amigos Company reports sales revenue of $250,000 on its income statement. Its balance sheet reveals beginning and ending accounts receivable of $50,000 and $47,000, respectively. What is the amount collected from customers of the company? Select one: A. $ 3,000 B. $250,000 C. $253,000 D. $247,000

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