Question : 66.The appropriate section in the statement of cash flows for : 1236531

66.The appropriate section in the statement of cash flows for reporting the issuance of common stock for cash is:   

A.Operating activities.

B.Financing activities.

C.Investing activities.

D.Schedule of noncash investing or financing activity.

E.This is not reported on the statement of cash flows.

67.A company’s transactions with its creditors to borrow money and/or to repay the principal amounts of both short- and long-term debt are reported as cash flows from:   

A.Operating activities.

B.Investing activities.

C.Financing activities.

D.Direct activities.

E.Indirect activities.

68.The appropriate section in the statement of cash flows for reporting the receipt of cash dividends from investments in securities is:   

A.Operating activities.

B.Financing activities.

C.Investing activities.

D.Schedule of noncash investing or financing activity.

E.This is not reported on the statement of cash flows.

69.Which one of the following is representative of typical cash flows from operating activities?   

A.Proceeds from collecting the principal amounts of loans.

B.Repayment of principals on loans.

C.Proceeds from the issuance of bonds and notes payable.

D.Payments by a merchandiser to acquire equity securities of other companies.

E.Receipts of cash sales.

70.Typical cash flows from investing activities include each of the following except:   

A.Payments to purchase property, plant and equipment or other productive assets (excluding inventory).

B.Proceeds from collecting the principal amount of accounts receivable arising from customer sales.

C.Payments to buy intangible assets.

D.Payments to acquire held-to maturity securities of other entities, except cash equivalents.

E.Proceeds from the sale of equipment.

71.If a company borrows money from a bank, the interest paid on this loan should be reported on the statement of cash flows as a(n):   

A.Operating activity.

B.Investing activity.

C.Financing activity.

D.Noncash investing and financing activity.

E.This is not reported in the statement of cash flows.

72.Cash flows from selling trading securities are usually reported in the statement of cash flows as part of:   

A.Operating activities.

B.Financing activities.

C.Investing activities.

D.Noncash activities.

E.This is not reported in the statement of cash flows.

73.Which of the following is included in the cash flows from financing activities section of the statement of cash flows?   

A.Interest revenue.

B.Sale of equipment.

C.Interest expense.

D.Purchase of treasury stock.

E.Purchase of stock in another company.

74.Cash flows from interest received on loans are reported in the statement of cash flows as part of:   

A.Operating activities.

B.Financing activities.

C.Investing activities.

D.Noncash activities.

E.This is not reported in the statement of cash flows.

75.The accounting principle that requires important noncash financing and investing activities be reported on the statement of cash flows or in a footnote is the:   

A.Historical cost principle.

B.Materiality principle.

C.Full disclosure principle.

D.Going concern principle.

E.Business entity principle.