Question 1.

Stock dividends distributed appear in which, if any, section of the cash flow statement?

Select one:

a. operating activities section only

b. operating and investing activities section

c. financing and investing activities section

d. The distribution of a stock dividend does not appear anywhere in the cash flow statement

Question 2.

The issuance of common shares for cash would be reported on a statement of cash flows under:

Select one:

a. the investing activities

b. the financing activities

c. the operating activities

d. either investing activities or operating activities

Question 3.

The payment of a cash dividend previously recorded

Select one:

a. reduces liabilities and reduces assets

b. increases shareholders' equity and reduces liabilities

c. reduces shareholders' equity and reduces assets

d. increases liabilities and increases assets

Question 4.

The operating activities section of an indirect method statement of cash flows includes:

Select one:

a. changes in current asset balances

b. cash paid for inventory

c. cash received from customers

d. cash paid for operating expenses

Question 5.

No Harm Corporation sold some of its used equipment with a book value of $52,000 for $47,000 cash. The indirect method statement of cash flows will reflect an addition in the investing activities section of:

Select one:

a. $47,000 and a deduction of $5,000 in the operating activities section

b. $52,000 and an addition of $5,000 in the operating activities section

c. $47,000 and an addition of $5,000 in the operating activities section

d. $52,000 and a deduction of $5,000 in the operating activities section

Question 6.

Jantzi Company reported capital assets, net of accumulated depreciation, on January 1, 2017, at $427,500 and $579,300 on December 31, 2017. The income statement showed depreciation of $38,700. Jantzi Company acquired $275,000 of capital assets during the year and reported proceeds from the sale of capital assets of $89,200 for the year. The gain or loss resulting from the sale of capital assets was:

Select one:

a. $2,390 loss

b. $5,050 gain

c. $4,700 gain

d. $3,400 loss

Question 7.

Which of the following is a method for reporting cash flows from operating activities that begins with net income and reconciles to cash flows from operating activities?

Select one:

a. accrual method

b. indirect method

c. cash-basis method

d. direct method

Question 8.

Using the indirect method of preparing a statement of cash flows, depreciation expense for the current year is:

Select one:

a. added in the operating activities section

b. subtracted in the operating activities section

c. added in the investing activities section

d. added in the financing activities section

Question 9.

The issuance of bonds for cash would be reported on a statement of cash flows under the

Select one:

a. investing activities

b. financing activities

c. operating activities

d. no activities because issuing bonds for cash would not be reported on a statement of cash flows

Question 10.

Glow Corporation has 50,000 shares of preferred shares outstanding, with annual dividends paid at the rate of $1.50 per share. Glow also has 100,000 shares of common shares outstanding. If Glow declares a $250,000 dividend in 2013, each outstanding share of common shares would receive

Select one:

a. $2.50

b. $1.50

c. $1.75

d. $1.17