Multiple Choice Question 85

Which of the following is classified as a financing activity?

Payment of dividends

Receipt of dividend income

Receipt of interest on loan receivable

Investment in another companys stock

Multiple Choice Question 87

When a company repurchases its own stock, which of the following is the correct reporting on the statement of cash flows?

A source of cash in the investing section

A use of cash in the investing section

A source of cash in the financing section

A use of cash in the financing section

Multiple Choice Question 89

During the current year, XYZ Corporation purchased land for $5,000 and sold a piece of factory machinery with a book value of $15,000 for $12,000 cash. What is XYZs net cash flows provided by investing activities for the year?

($10,000)

$7,000

$10,000

($7,000)

Multiple Choice Question 93

For the past two years, Monroe Corporations statement of cash flows has shown net cash provided by investing activities. Which of the following choices could explain this result?

Collection of accounts receivable balances.

Sales of factory equipment.

Receipt of cash dividends from investments in other companys stock.

Issuance of long-term debt.