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1 | |
The three major categories in the statement of cash flows are the following, except: |
| | A) | Investing |
| | B) | Directing |
| | C) | Operating |
| | D) | Financing |
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2 | |
Which is the correct order of categories for the statement of cash flows? |
| | A) | Financing, operating, investing |
| | B) | Investing, operating, financing |
| | C) | Operating, investing, financing |
| | D) | Operating, financing, investing |
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3 | |
Which of the following items do not belong in the operating section of the statement of cash flows? |
| | A) | Interest paid |
| | B) | Dividends paid |
| | C) | Taxes paid |
| | D) | Interest received |
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4 | |
Which of the following items do not belong in the investing section of the statement of cash flows? |
| | A) | Interest paid |
| | B) | Equipment purchased |
| | C) | Equipment sold |
| | D) | Intangible assets acquired |
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5 | |
Which of the following items do not belong in the financing section of the statement of cash flows? |
| | A) | Interest paid |
| | B) | Interest received |
| | C) | Taxes paid |
| | D) | All three of the above |
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6 | |
Under the indirect presentation of the statement of cash flows, depreciation: |
| | A) | Is added to net income |
| | B) | Is subtracted from net income |
| | C) | Is not presented |
| | D) | Is presented in the financing section |
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7 | |
Under the direct presentation of the statement of cash flows, depreciation: |
| | A) | Is added to net income |
| | B) | Is subtracted from net income |
| | C) | Is not presented |
| | D) | Is presented in the financing section |
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8 | |
When comparing the direct method and the indirect method of presentation of the statement of cash flows: |
| | A) | The total cash from operating activities will differ |
| | B) | The total cash from financing activities will differ |
| | C) | The total cash from investing activities will differ |
| | D) | The totals from all three categories will remain the same |
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9 | |
When comparing the direct method and the indirect method of presentation of the statement of cash flows: |
| | A) | Only the cash from operating activities will differ |
| | B) | Only the cash from financing activities will differ |
| | C) | Only the cash from investing activities will differ |
| | D) | All three categories will differ |
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10 | |
Cash from operating activities: |
| | A) | Always equal net income |
| | B) | Always equal operating income |
| | C) | Always equal the change in retained earnings |
| | D) | May be different from net income, operating income or the change in retained earnings |
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