Question
Depreciation on factory equipment would be reported in the statement of cash flows prepared by the indirect method in a. the cash flows from financing
Depreciation on factory equipment would be reported in the statement of cash flows prepared by the indirect method in
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| a. | the cash flows from financing activities section |
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| b. | a separate schedule |
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| c. | the cash flows from operating activities section |
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| d. | the cash flows from investing activities section |
On the statement of cash flows, the cash flows from operating activities section would include
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| a. | receipts from the sale of investments |
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| b. | receipts from the issuance of common stock |
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| c. | cash receipts from sales of merchandise |
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| d. | payments for the acquisition of investments |
On the statement of cash flows, the cash flows from financing activities section would include
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| a. | receipts from the issuance of common stock |
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| b. | payments for the acquisition of investments |
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| c. | receipts from a note receivable |
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| d. | receipts from the sale of investments |
Financing activities include
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| a. | acquiring long-lived assets |
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| b. | lending money |
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| c. | issuing debt |
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| d. | acquiring investments |
Accounts receivable from sales to customers amounted to $40,000 and $32,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $110,000. Exclusive of the effect of other adjustments, the net cash flows from operating activities to be reported on the statement of cash flows using the indirect method is
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| a. | $118,000 |
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| b. | $102,000 |
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| c. | $150,000 |
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| d. | $110,000 |
On the statement of cash flows, the cash flows from investing activities section would include
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| a. | payments for retirement of bonds payable |
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| b. | payments for dividends |
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| c. | receipts from the sale of investments |
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| d. | receipts from the issuance of common stock
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Fundamentals of Financial Accounting
Authors: Fred Phillips, Robert Libby, Patricia Libby
4th edition
978-0073369709, 73369705, 78025370, 978-0077444846, 77444841, 978-0078025372
