Question : 61. Under U.S. GAAP, the statement of cash flows classifies cash : 1230583

61. Under U.S. GAAP, the statement of cash flows classifies cash expenditures for interest on debt as a(n) _____ activity and classifies cash expenditures for dividends to shareholders as a(n) _____ activity.  
A. operating; operating
B. operating: investing
C. operating; financing
D. financing; operating
E. financing; financing

62. Under U.S. GAAP, the statement of cash flows classifies cash expenditures for interest expense as a(n) _____ activity and classifies cash expenditures to redeem debt as a(n) _____ activity. 
A. financing; financing
B. financing: operating
C. operating; investing
D. operating; operating
E. operating; financing

63. Under U.S. GAAP, the statement of cash flows classifies changes in accounts payable as a(n) _____ activity and classifies changes in short-term bank borrowing as a(n) _____ activity.  
A. operating: financing
B. financing; operating
C. investing; operating
D. operating; operating
E. financing; financing

64. U.S. GAAP requires that the statement of cash flows explain the changes in the firm’s 
A. cash and cash equivalents during the accounting period
B. resources and obligations during the accounting period
C. components of income from operations during the accounting period
D. accounts receivable and accounts payable during the accounting period
E. all of the above

65. The statement of cash flows provides information about 
A. the cumulative effects of operations over several years
B. the balances in shareholders’ equity accounts
C. the relationship between operations and liquidity of a firm
D. the success of management’s cash management strategy
E. all of the above

66. Which of the following statements is true concerning the statement of cash flows? 
A. Cash receipts and disbursements equal revenues and expenses.
B. Cash for short-term obligations must come from operations.
C. The net change in cash will equal the net change in all noncash accounts. 
D. All of the above are true statements concerning the statement of cash flows.
E. None of the above are true statements concerning the statement of cash flows.

67. Which method of preparing the statement of cash flows is required by U.S. GAAP? 
A. direct
B. indirect
C. funds flow
D. either direct or indirect may be used if appropriate note disclosure is included
E. either direct or funds flow may be used if appropriate note disclosure is included

68. The statement of cash flows reports the amount of cash flow from a firm’s 
A. divestiture, and acquisition activities
B. operating, divestiture, and acquisition activities
C. funding and disbursement activities
D. operating, investing, and financing activities
E. operating, funding and disbursement activities

69. Cash flows from operating activities include 
A. selling goods and providing services
B. acquiring buildings and equipment
C. payment of dividends
D. retiring long-term debt
E. issuing stocks and bonds

70. U.S. GAAP requires that the statement of cash flows disclose the amount of cash flows arising frominvesting activities including 
A. interest received on investments in bonds
B. interest paid on the company’s bonds
C. cash used for the acquisition of non-current assets
D. cash dividends paid on the company’s stock
E. cash dividends received on investments in other company’s stock