Question :
51. Using the Indirect MethodFor the following question(s), indicate how each : 1224829
51. Using the Indirect Method
For the following question(s), indicate how each transaction described would be classified on a statement of cash flows if the operating activities section is prepared under the indirect method.
When using the indirect method, where is the decrease in accounts payable shown on the statement of cash flows?
A. Operating activity
B. Investing activity
C. Financing activity
D. Noncash investing and financing activity
52. Using the Indirect Method
For the following question(s), indicate how each transaction described would be classified on a statement of cash flows if the operating activities section is prepared under the indirect method.
When using the indirect method, where is the gain from selling a long-term investment appear on the statement of cash flows? (The proceeds from selling the investment are considered separately.)
A. Operating activity
B. Investing activity
C. Financing activity
D. Financing and Investing activities
53. Using the Indirect Method
For the following question(s), indicate how each transaction described would be classified on a statement of cash flows if the operating activities section is prepared under the indirect method.
When using the indirect method, where is an increase in accounts receivable during the year shown on the statement of cash flows?
A. Operating activity
B. Investing activity
C. Financing activity
D. Noncash investing and financing activity
54. Using the Indirect Method
For the following question(s), indicate how each transaction described would be classified on a statement of cash flows if the operating activities section is prepared under the indirect method.
When using the indirect method, where is the purchase of equipment for cash shown on the statement of cash flows?
A. Operating activity
B. Investing activity
C. Financing activity
D. Noncash investing and financing activity
55. Using the Indirect Method
For the following question(s), indicate how each transaction described would be classified on a statement of cash flows if the operating activities section is prepared under the indirect method.
When using the indirect method, where is the receipt of cash from the sale of long-term investments treated on the statement of cash flows?
A. Operating activity
B. Investing activity
C. Financing activity
D. Noncash investing or financing activity
56. Using the Indirect Method
For the following question(s), indicate how each transaction described would be classified on a statement of cash flows if the operating activities section is prepared under the indirect method.
When using the indirect method, where is the issuing of stock for cash shown on the statement of cash flows?
A. Operating activity
B. Investing activity
C. Financing activity
D. Non cash investing and financing activity
57. Using the Indirect Method
For the following question(s), indicate how each transaction described would be classified on a statement of cash flows if the operating activities section is prepared under the indirect method.
When using the indirect method, where would the retirement of bonds payable at their maturity date be shown on the statement of cash flows?
A. Operating activity
B. Investing activity
C. Financing activity
D. Noncash investing and financing activity
58. Using the Indirect Method
For the following question(s), indicate how each transaction described would be classified on a statement of cash flows if the operating activities section is prepared under the indirect method.
When using the indirect method, where would the payment of cash dividends be shown on the statement of cash flows?
A. Operating activities
B. Investing activities
C. Financing activities
D. Noncash investing and financing activity
59. When using the indirect method, which balance sheet accounts are most affected by investing activities?
A. Current assets and current liabilities
B. Long-term assets
C. Long-term liabilities
D. Stockholders’ equity
60. Mimi’s Pies had the following results for December 31, 2011 and 2012, respectively:
2011
2012
Cash
$ 40,000
$ 50,000
Noncash current assets
160,000
190,000
Cash inflows from financing activities
210,000
Cash inflows from operating activities
90,000
What was the amount of cash flows from investing activities for 2012?
A. Cash inflow of $290,000
B. Cash outflow of $290,000
C. Cash outflow of $10,000
D. Cash outflow of $30,000
