Question : 76. The appropriate section in the statement of cash flows for : 1257703

76. The appropriate section in the statement of cash flows for reporting the purchase of land in exchange for common stock is: 
A. Operating activities.
B. Financing activities.
C. Investing activities.
D. Schedule of noncash investing or financing activity.
E. Reconciliation of cash balance.

77. The purchase of long-term assets by issuing a note payable for the entire amount is reported on the statement of cash flows in the: 
A. Operating activities.
B. Financing activities.
C. Investing activities.
D. Schedule of noncash financing and investing activities.
E. Reconciliation of cash balance.

78. An example of a transaction that must be disclosed as a noncash investing and financing activity includes all but which of the following? 
A. The retirement of debt by issuing equity stock.
B.  A transaction exchanging cash equivalents for cash.
C. The leasing of assets in a transaction that qualifies as a capital lease.
D. The purchase of noncash assets in exchange for equity or debt securities.
E. The purchase of long-term assets financed by a cash down payment and a note payable to the seller for the balance.

79. Noncash investing and financing activities may be disclosed in: 
A. A note in the financial statements or a schedule attached to the statement of cash flows.
B. The operating activities section of the statement of cash flows.
C. The investing activities section of the statement of cash flows.
D. The financing activities section of the statement of cash flows.
E. The reconciliation of cash balance section.

80. Accounting standards: 
A. Allow companies to omit the statement of cash flows from a complete set of financial statements if cash is an insignificant asset.
B. Require that companies omit the statement of cash flows from a complete set of financial statements if the company has no investing activities.
C. Require that companies include a statement of cash flows in a complete set of financial statements.
D. Allow companies to include the statement of cash flows in a complete set of financial statements if the cash balance makes up more than 50% of the current assets.
E. Allow companies to omit the statement of cash flows from a complete set of financial statements if the company has no financing activities.

81. Common uses of the statement of cash flows include all but which of the following?
A. Management prediction of future cash flows for decision making.
B. Investor assessment of cash flows before buying and selling stock.
C. Creditor evaluation of a company’s ability to generate cash to cover debt.
D. Government assessment of whether company is able to pay taxes as they become due.
E. Management determination of the specific sources and uses of cash.

82. The statement of cash flows helps analysts evaluate all but which of the following? 
A. Ability of the company to generate profit.
B. Source of cash used for plant expansion.
C. Differences between net income and net operating cash flow.
D. Source of cash used to finance investing activities.
E.  Source of cash used for debt repayments..

83. The statement of cash flows cannot help address questions such as 
A. How is the increase in investments financed?
B. What is the source of cash for new plant assets?
C. How much cash is generated from or used in operations?
D.  How much of the company’s revenues have been retained as profit?
E. Why is cash flow from operations different from income?

84. The cash flow on total assets ratio: 
A. Is the same as return on assets.
B. Is the same as profit margin.
C. Can be an indicator of earnings quality.
D. Is highly affected by accounting principles of income recognition and measurement.
E. Is average net assets divided by cash flows from operations.

85. The cash flow on total assets ratio is calculated by: 
A. Dividing cash flows from operations by average total assets.
B. Dividing total cash flows by average total assets.
C. Dividing average total assets by cash flows from investing activities.
D. Dividing average total assets by total cash flows.
E. Total cash flows divided by average total assets times 365.