Question :
MULTIPLE CHOICE
54.Noncash investing and financing transactions
a.
appear in both : 1244247
MULTIPLE CHOICE
54.Noncash investing and financing transactions
a.
appear in both the investing and financing activities sections.
b.
appear in either the investing or financing activities section, but not both.
c.
appear as a separate schedule on the statement of cash flows.
d.
are excluded from the statement of cash flows.
55.Cash equivalents do not include
a.
commercial paper.
b.
money market accounts.
c.
marketable securities.
d.
U.S. Treasury bills.
56.The most future-directed of the basic financial statements is the
a.
income statement.
b.
statement of stockholders’ equity.
c.
statement of cash flows.
d.
balance sheet.
57.How are cash equivalents treated on a statement of cash flows?
a.
They are disclosed in the financing activities section.
b.
They are disclosed in the investing activities section.
c.
They are combined with the Cash account.
d.
They are disclosed in the operating activities section.
58.How are transfers between cash and cash equivalents treated on a statement of cash flows?
a.
They are not shown as any type of cash flow.
b.
They are disclosed as an operating activity.
c.
They are disclosed as a financing activity.
d.
They are disclosed as an investing activity.
59.The primary purpose of the statement of cash flows is to provide information
a.
regarding a company’s financial position at the end of an accounting period.
b.
about a company’s cash receipts and cash payments during an accounting period.
c.
about a company’s investing and financing activities during an accounting period.
d.
regarding the results of operations for a period of time.
60.Management would not use the statement of cash flows to
a.
determine the financial position of the company.
b.
evaluate the effects of major policy decisions involving investments and financing.
c.
determine dividend policy.
d.
assess the liquidity of the business.
61.Investors and creditors would find the statement of cash flows least useful in assessing
a.
the need for additional financing.
b.
ability to pay dividends and liabilities.
c.
financial position at a point in time.
d.
ability to generate positive future cash flows.
62.Elkwood Corporation acquired a land site with a building by issuing a 30-year mortgage payable. In Elkwood’s statement of cash flows, this transaction should be shown
a.
as both a cash flow from investing activity and a cash flow from financing activity.
b.
only as a cash flow from investing activity for the purchase of the land and building.
c.
in the schedule of noncash investing and financing transactions.
d.
only as a cash flow from financing activity for the issuance of the mortgage payable.
63.Which of the following is reported as a noncash investing and financing transaction on the statement of cash flows?
a.
Purchase of treasury stock
b.
Payment of long-term debt
c.
Sale of preferred stock
d.
Conversion of bonds payable to stock
