Question : 53.An example of a financing activity is A. the sale of merchandise : 1169188

 

 

53.An example of a financing activity is   

A. the sale of merchandise for cash.

 

B. the issue of stock for cash.

 

C. the sale of used equipment for cash.

 

D. the purchase of a building.

 

 

 

 

54.A corporation received $50,000 in cash when it sold a building and paid $90,000 in cash when it purchased some new machinery. As a result, the statement of cash flows would report   

A. $40,000 as the net cash used in financing activities.

 

B. $40,000 as the net cash provided by investing activities.

 

C. $40,000 as the net cash used in investing activities.

 

D. $40,000 as the net cash provided by financing activities.

 

 

 

 

55.A corporation received $80,000 in cash when it sold a building and paid $50,000 in cash when it purchased some new machinery. As a result, the statement of cash flows would report   

A. $30,000 as the net cash used in financing activities.

 

B. $30,000 as the net cash provided by investing activities.

 

C. $30,000 as the net cash used in investing activities.

 

D. $30,000 as the net cash provided by financing activities.

 

 

 

 

56.A corporation received $80,000 in cash when it sold common stock and used the proceeds to pay $60,000 in bonds payable. As a result, the statement of cash flows would report   

A. $20,000 as the net cash used in financing activities.

 

B. $20,000 as the net cash provided by investing activities.

 

C. $20,000 as the net cash used in investing activities.

 

D. $20,000 as the net cash provided by financing activities.

 

 

 

 

57.The income statement shows a loss of $5,000 on the sale of equipment. As a result, the statement of cash flows would report   

A. $5,000 as an increase in cash provided by investing activities.

 

B. $5,000 as a decrease in cash used in investing activities.

 

C. $5,000 as an increase in cash provided by operating activities.

 

D. $5,000 as a decrease in cash used in operating activities.

 

 

 

 

58.Information from Zurich Company’s income statement is as follows: net income $12,300, depreciation expense $12,000; gain on sale of equipment $4,000; proceeds from the sale of land $10,000. The net cash provided by operating activities is:   

A. $20,300.

 

B. $24,300.

 

C. $26,300.

 

D. $30,300.

 

 

 

59.Information from Zwatsch Company’s income statement is as follows: net income $55,000, depreciation expense $12,000; loss on sale of plant assets $4,000; gain on retirement of bonds $10,000; an increase in accounts receivable of $6,000 and dividend payments of $5,000. The net cash provided by operating activities is:   

A. $73,000.

 

B. $67,000.

 

C. $55,000.

 

D. $50,000.

 

 

 

60.A decrease in accounts payable from $60,000 to $50,000 will be reflected on the statement of cash flows as a:   

A. $10,000 source of operating activity funds.

 

B. $10,000 use of operating activity funds.

 

C. $10,000 source of investing activity funds.

 

D. $10,000 use of investing activity funds.

 

 

 

 

61.On a statement of cash flows, depreciation expense is   

A. subtracted from net income in the computation of the net cash provided by operating activities.

 

B. added to net income in the computation of the net cash provided by operating activities.

 

C. treated as a cash outflow in the computation of the net cash used in investing activities.

 

D. treated as a cash inflow in the computation of the net cash used in investing activities.

 

 

 

 

62.An example of an investing activity is   

A. the issue of preferred stock.

 

B. the resale of treasury stock.

 

C. the issue of bonds and notes payable.

 

D. the purchase of property, plant, or equipment for cash.