Question : 61.Which one of the following not a use of cash? A.The : 1302920

61.Which one of the following is not a use of cash?

A.The payment of a loan of which was borrowed in order to purchase a factory

B.The issuance of a stock dividend

C.Payments to suppliers

D.A payment to reduce long-term debt

62.Which one of the following is a cash inflow reported in the operating activities section of the statement of cash flows?

A.The issuance of common stock

B.The issuance of a long-term note payable

C.The collection of accounts receivable

D.The payment for raw materials

63.Which section(s) of the statement of cash flows is(are) identical under both the direct and indirect methods?

A.The operating activity section

B.The investing and financing activity sections

C.The financing and operating activity sections

D.The operating, investing, and financing activity sections

64.Race World reported credit sales of $445,000, ending accounts receivable of $41,500, and beginning accounts receivable of $33,500. What is the amount of cash collected from customers?

A.$486,500

B.$453,000

C.$411,500

D.$437,000

65.Under the indirect method of preparing the statement of cash flows, an increase in inventories is deducted from net income to calculate cash provided or used by operating activities because

A.cash payments to customers were less than the inventory purchases made during the period.

B.cash paid to acquire inventory was greater than cost of goods sold by the amount that inventories increased.

C.cash payments to customers were larger than the inventory purchases made during the period.

D.inventory purchases were less than the cost of goods sold by the amount that inventories increased.

66.Why is a decrease in accounts receivable added to net income when determining cash provided by operating activities?

A.Cash collections from customers were greater than the sales generated.

B.Cash collections increased due to an increase in sales.

C.Cash collections decreased due to a decline in sales.

D.Cash collections from customers were less than the sales reported.

67.Handley Mowers prepares its statement of cash flows using the indirect method. The following information was taken from its  income statement and balance sheet for 2014:

Net loss              ($6,000)

Increase in accounts receivable              2,400

Depreciation expense              3,500

Decrease in accounts payable              800

Loss on sale of investments              1,300

Payment of dividends              1,500

How much is cash provided/(used) by operating activities?

A.$4,400

B.($2,900)

C.($4,400)

D.($7,600)

68.Which of the following is added to net income under the indirect method of determining cash provided/(used) by operating activities?

A.Gain on the sale of equipment

B.Increase in notes payable

C.Increase in inventory

D.Decrease in prepaid rent

69.When preparing the operating activities section of a statement of cash flows using the indirect method, various adjustments are needed. Which of the following adjustments is incorrectly stated?

A.Deduct any increases in inventories from net income.

B.Deduct any decreases in non-cash current liabilities from net income.

C.Add depreciation and amortization expense to net income.

D.Add any gain on the sale of equipment.

70.In which of the following sections of the statement of cash flows will users find cash flows that are the most important to the long-run success of a company?

A.Operating activities section

B.Investing activities section

C.Financing activities section

D.Operating, investing, and financing activities