Question : 71. Which of the following included in the cash flows from : 1225390

71. Which of the following is included in the cash flows from financing activities section of the statement of cash flows? 

A. Interest revenue.

B. Sale of equipment.

C. Interest expense.

D. Purchase of treasury stock.

E. Purchase of stock in another company.

72. Cash flows from interest received on loans are reported in the statement of cash flows as part of: 

A. Operating activities.

B. Financing activities.

C. Investing activities.

D. Noncash activities.

E. None of these. This is not reported in the statement of cash flows.

73. The accounting principle that requires important noncash financing and investing activities be reported on the statement of cash flows or in a footnote is the: 

A. Historical cost principle.

B. Materiality principle.

C. Full disclosure principle.

D. Going concern principle.

E. Business entity principle.

74. The appropriate section in the statement of cash flows for reporting the purchase of land in exchange for common stock is: 

A. Operating activities.

B. Financing activities.

C. Investing activities.

D. Schedule of noncash investing or financing activity.

E. Reconciliation of cash balance.

75. The purchase of long-term assets by issuing a note payable for the entire amount is reported on the statement of cash flows in the: 

A. Operating activities.

B. Financing activities.

C. Investing activities.

D. Schedule of noncash financing and investing activities.

E. Reconciliation of cash balance.

76. An example of a transaction that must be disclosed as a noncash investing and financing activity includes: 

A. The retirement of debt by issuance of equity.

B. The purchase of long-term assets financed by a cash down payment and a note payable to the seller for the balance.

C. The leasing of assets in a transaction that qualifies as a capital lease.

D. The purchase of noncash assets in exchange for equity or debt securities.

E. All of these.

77. Noncash investing and financing activities may be disclosed in: 

A. A note in the financial statements or a schedule attached to the statement of cash flows.

B. The operating activities section of the statement of cash flows.

C. The investing activities section of the statement of cash flows.

D. The financing activities section of the statement of cash flows.

E. The reconciliation of cash balance section.

78. Accounting standards: 

A. Allow companies to omit the statement of cash flows from a complete set of financial statements if cash is an insignificant asset.

B. Require that companies omit the statement of cash flows from a complete set of financial statements if the company has no investing activities.

C. Require that companies include a statement of cash flows in a complete set of financial statements.

D. Allow companies to include the statement of cash flows in a complete set of financial statements if the cash balance makes up more than 50% of the current assets.

E. Allow companies to omit the statement of cash flows from a complete set of financial statements if the company has no financing activities.

79. The statement of cash flows helps analysts evaluate the: 

A. Source of cash used for debt repayments.

B. Source of cash used for plant expansion.

C. Differences between net income and net operating cash flow.

D. Source of cash used to finance investing activities.

E. All of these.

80. The statement of cash flows helps address questions such as 

A. How is the increase in investments financed?

B. What is the source of cash for new plant assets?

C. How much cash is generated from or used in operations?

D. Why is cash flow from operations different from income?

E. All of these.