Question :
71.Which one of the following a common use of the : 1302921
71.Which one of the following is a common use of the statement of cash flows by investors?
A.To determine if the company can generate enough cash to acquire another company
B.To determine if the company can generate enough cash to pay cash dividends to stockholders
C.To determine if the company can generate enough cash to pay its employees
D.To determine if the company can generate enough cash to buy equipment
72.Which of the following is a cash equivalent?
A.Accounts receivable
B.A one-year note receivable
C.Money market funds
D.An investment in Microsoft’s stock
73.Which of the following is a method that can often be used to offset problems related to cash flows from operating activities?
A.Reduce capital expenditures
B.Lay off employees
C.Increase payments on short-term notes payable
D.Acquire treasury stock
74.What information is needed to determine cash paid to suppliers?
I.The change in accounts receivable during the period
II.Cost of goods sold for the period
III.The change in inventories during the period
IV.The change in accounts payable during the period
I, II, III, and IV
I, II, and III
II, III, and IV
II and III
III and IV
75.In order to be economically viable in the long run, what must a business generate?
A.Negative financing activities, positive investing activities, and positive operating activities
B.Positive operating activities
C.Positive investing, financing, and operating activities
D.Negative investing and financing activities and positive operating activities
76.Which of the following is not a cash flow included in the investing activities section of the statement of cash flows?
A.The payment of the principal balance on a long-term loan payable
B.Purchase of another company
C.The proceeds from the sale of a building
D.The collection of a long-term note receivable
77.Which of the following is a cash flow included in the financing activities section of the statement of cash flows?
A.The payment of interest on notes payable
B.The receipt of dividends from stock investments
C.The making loans to other entities
D.The payment of principal on notes payable
78.Ogden Company uses its accounts payable account only for inventory purchases. The following account balances were reported on its financial statements:
AccountsDecember 31, 2014December 31, 2013
Merchandise inventory$70,000$66,000
Accounts payable68,00065,000
Cost of goods sold889,000856,000
How much cash did Ogden Company pay to suppliers during 2014?
$887,000
$890,000
$896,000
$34,000
79.How is the receipt of dividends from stock investments reported on the statement of cash flows?
A.As an investing activity
B.As an operating activity
C.As a financing activity
D.As a non-cash activity
80.Which of the following is reported as an operating activity on the statement of cash flows?
A.Cash payments for income taxes
B.Cash received from the collection of long-term notes receivable
C.Cash paid for dividends to stockholders
D.Cash proceeds from issuing long-term debt
