Question : Multiple Choice Questions 56. The statement of cash flows reports: A. Assets, liabilities, and : 1257741

Multiple Choice Questions
 

56. The statement of cash flows reports: 
A. Assets, liabilities, and equity.
B. Revenues, gains, expenses, and losses.
C. Cash inflows and cash outflows for an accounting period.
D. Equity, net income, and dividends.
E. Changes in equity.

57. The statement of cash flows reports all but which of the following: 
A. Cash flows from operating activities.
B. Cash flows from financing activities.
C. Cash flows from investing activities.
D. Significant noncash financing and investing activities.
E. The financial position of the company at the end of the accounting period. 

 58. The statement of cash flows is: 
A. Another name for the statement of financial position.
B. A financial statement that presents information about changes in equity during a period.
C. A financial statement that reports the cash inflows and cash outflows for an accounting period, and that classifies those cash flows as operating activities, investing activities, or financing activities.
D. A financial statement that lists the types and amounts of assets, liabilities, and equity of a business on a specific date.
E. A financial statement that lists the types and amounts of the revenues and expenses of a business for an accounting period.

59. A cash equivalent is : 
A. An investment readily convertible to a known amount of cash.
B. Close to its maturity date but its market value may still be affected by interest rate changes.
C. Generally is within 12 months of its maturity date.
D. Is not considered highly liquid.
E. Another name for cash.

60. An investment that is readily convertible to a known amount of cash and that is sufficiently close to its maturity date so that its market value is unaffected by interest rate changes is a(n): 
A. Short-term marketable equity security.
B. Operating activity.
C. Common stock.
D. Cash equivalent.
E. Financing activity.

61. Activities that involve the production or purchase of merchandise and the sale of goods and services to customers, including expenditures related to administering the business, are classified as: 
A. Financing activities.
B. Investing activities.
C. Operating activities.
D. Direct activities.
E. Indirect activities.

62. The appropriate section in the statement of cash flows for reporting the purchase of equipment 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.

63. Which of the following items is reported on the statement of cash flows under financing activities? 
A. Declaration of a cash dividend.
B. Payment of a cash dividend.
C. Declaration of a stock dividend.
D. Payment of a stock dividend.
E. Stock split.

64. Investing activities do not include the: 
A. Purchase of plant assets.
B. Lending and collecting on notes receivable.
C.  Issuance of common stock
D. Sale of plant assets.
E. Sale of short-term investments other than cash equivalents.

65. The appropriate section in the statement of cash flows for reporting the cash payment of wages 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.