Question :
91. Which of the following best describe financing activities? A. They primarily deal : 1228478
91. Which of the following best describe financing activities?
A. They primarily deal with securing money by bank loans or selling stock to investors.
B. They primarily are connected to the income producing activities of the company as reported on the income statement.
C. They primarily deal with buying and building facilities used over many years by the business.
D. They primarily deal with selling facilities once used by the business.
92. Which of the following would cause a cash outflow from investing activities?
A. Purchasing shares of stock of another company.
B. Paying a cash dividend to stockholders.
C. Issuing additional shares a company’s stock.
D. Using cash to purchase inventory.
93. Which of the following would result when a company borrows cash and signs a note payable due in two years?
A. A noncurrent liability and an investing cash flow are created.
B. A noncurrent liability and a financing cash flow are created.
C. A current liability and an investing cash flow are created.
D. A current liability and a financing cash flow are created.
94. Which of the following would result when a company sells additional shares of stock for cash?
A. A noncurrent liability and a financing cash flow are created.
B. Contributed capital increases and a financing cash flow results.
C. A noncurrent liability and an investing cash flow are created.
D. Contributed capital increases and an investing cash flow results.
95. Which of the following would result when a company purchases a factory building using cash?
A. A noncurrent asset and an investing cash flow are created.
B. A noncurrent asset and a financing cash flow are created.
C. A current asset and an investing cash flow are created.
D. A current asset and a financing cash flow are created.
96. Which of the following would result when a company lends cash to a franchisee in exchange for a ten-month note receivable?
A. A noncurrent asset and an investing cash flow are created.
B. A noncurrent asset and a financing cash flow are created.
C. A current asset and a financing cash flow are created.
D. A current asset and an investing cash flow are created.
97. Which of the following would result when a company pays a previously declared cash dividend?
A. Current liabilities are reduced and a financing cash flow is created.
B. Stockholders’ equity is reduced and a financing cash flow is created.
C. Current assets are reduced and an investing cash flow is created.
D. Stockholders’ equity is reduced and an investing cash flow is created.
98. Which of the following would be classified as financing cash flows on a cash flow statement?
1. Paying cash dividends.
2. Lending cash to others.
3. Issuing stock for cash.
4. Purchasing long-term assets for cash.
5. Repurchasing stock with cash.
A. 1, 2, 5
B. 2, 3, 4
C. 1, 3, 5
D. 2, 4, 5
99. Which of the following would be classified as investing cash flows on a cash flow statement?
1. Acquired a building by signing a long-term mortgage payable.
2. Lending cash to others.
3. Issuing stock for cash.
4. Purchasing long-term assets for cash.
5. Selling stock investments for cash.
A. 1, 4, 5
B. 1, 2, 4
C. 1, 3, 5
D. 2, 4, 5
100. Which of the following statements is false?
A. Investing cash flows include the cash flows associated with lending money to others.
B. Financing cash flows include the cash flows associated with issuing and repurchasing stock.
C. Financing cash flows include the cash flows associated with borrowing and repaying debt excluding short-term bank loans.
D. Investing cash flows include the cash flows associated with buying and selling noncurrent assets.