Question :
71.Which of the following not classified among the investing activities : 1237511
71.Which of the following is not classified among the investing activities in a statement of cash flows?
A. Purchase of marketable securities for cash.
B. Collection of the principal amount of cash loans made to others.
C. Investment of cash made in the business by the owners.
D. Purchase of plant assets for cash.
72.Which of the following is not classified among the financing activities in a statement of cash flows?
A. Long-term borrowing.
B. Payment of dividends to stockholders.
C. Payment of interest to creditors.
D. Short-term borrowing.
73.Which of the following is an investing activity?
A. Purchase of equipment.
B. Payment of interest.
C. Issuing common stock.
D. Issuing long-term debt.
74.Which of the following is a financing activity?
A. Payment of interest.
B. Payment of dividends.
C. Making sales on account.
D. Paying off accounts payable.
75.Which of the following indicates cash receipts?
A. Debit entries in the Notes Receivable account.
B. Credit entries in the Marketable Securities account.
C. Debit entries in the Notes Payable account.
D. Credit entries in the Accumulated Depreciation account.
76.Which method will yield the higher cash flows from financing activities?
A. The indirect method.
B. The direct method.
C. Both direct and indirect methods will yield the same amount.
D. Depends upon the situation.
77.An example of a non-cash investing or financing activity that is disclosed in a supplementary schedule accompanying the statement of cash flows is:
A. Recording depreciation expense for the current year.
B. Declaring, but not paying, dividends on common stock.
C. Selling land in exchange for a note receivable.
D. Transferring cash from a checking account into a money market fund.
78.When equipment is sold at a loss:
A. The net proceeds are shown in the investing section.
B. The book value of the asset is shown in the investing section.
C. The book value of the asset is shown in the investing section, and the loss is shown in the operating section.
D. The net proceeds are shown in the financing section.
79.When equipment is purchased entirely through a loan:
A. The equipment is shown as an increase in the investing activities section.
B. The equipment is shown as a decrease in the investing activities section.
C. The loan is shown as an increase in the financing section.
D. Neither the loan nor the purchase of equipment is shown in the investing or the financing sections.
80.In 2015, Anderson Company purchased equipment for $363,000 and also sold some special purpose machinery with a book value of $155,000 for $182,000. In its statement of cash flows for 2015, Anderson should report the following with respect to the above transactions:
A. $363,000 net cash used by investing activities.
B. $181,000 net cash used by investing activities; $27,000 net cash provided by operating activities.
C. $181,000 net cash used by investing activities.
D. $363,000 cash used by investing activities; $182,000 cash provided by financing activities.
$363,000 – $182,000 = $181,000
An analysis of Korman Corporation’s Investment in Marketable Securities account during 2015 disclosed the following: Korman’s 2015 income statement included a $40,000 gain on sale of marketable securities and $30,000 dividend income from marketable securities. All payments and proceeds relating to marketable securities transactions were in cash.
