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1 | |
(DIRECT or INDIRECT) is the method of presenting a statement of cash flows that shows the cash flows from customer receipts and the disbursements of cash for merchandise? |
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(DIRECT or INDIRECT) is the method of presenting a statement of cash flows that reports net income and then adjusts the net income amount by adding and subtracting items that are necessary to yield net cash provided or used by operating activities. |
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Transactions with a company's owners and creditors are called activities. |
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Transactions that involve making and collecting loans or that involve purchasing and selling plant assets are called activities. |
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Activities that involve the production or purchase of merchandise and the sale of goods and services to customers, including expenditures related to administering the business are called activities. |
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A statement of reports the cash inflows and outflows for an accounting period. |
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7 | |
The collection of accounts receivable is a(n) (FINANCING, INVESTING, or OPERATING) activity. |
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8 | |
The purchase of a building in which production machinery will be installed and operated is a(n) (FINANCING, INVESTING or OPERATING) activity. |
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9 | |
The payment of cash dividends is a(n) (FINANCING, INVESTING, or OPERATING) activity. |
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A company sold a machine with a book value of $13,000 for $15,000. This transaction is a(n) (FINANCING, INVESTING, or OPERATING) activity. |
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11 | |
The purchase of merchandise for resale is a(n) (FINANCING, INVESTING, or OPERATING) activity. |
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Paying the interest expense on a long term note is an example of a(n) (FINANCING, INVESTING, or OPERATING) activity. |
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A transaction that involves both investing and financing activities, but does not affect any cash inflow or outflow is called a investing and financing activity. |
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A cash is a security that is readily convertible to a known amount of cash and is sufficiently close to its maturity date so its market value is unaffected by interest rate changes. |
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