Question : 31. Firms receive cash inflows and disburse cash outflows for financing : 1245949

 

 

31. Firms receive cash inflows and disburse cash outflows for financing activities such as to 
A. acquire property, plant, and equipment.
B. pay dividends to shareholders.
C. purchase intellectual property.
D. pay interest on borrowings.
E. all of the above.

 

32. _____ usually represents a major ongoing use of cash. 
A. Borrowing funds
B. Sales of existing noncurrent assets
C. Issuance of common shares
D. Acquisition of noncurrent assets, particularly property, plant, and equipment
E. All of the above are major ongoing uses of cash.

 

33. A firm obtains cash from all of the following except for:  
A. short-term borrowing.
B. issuing common shares.
C. issuing preferred shares.
D. paying dividends to shareholders.
E. long-term borrowing.

 

34. A firm uses cash to _____ These amounts appear as cash flow from financing activities in the statement of cash flows.  
A. pay dividends to shareholders
B. repay borrowing
C. reacquire outstanding common shares
D. reacquire outstanding preferred shares
E. all of the above

 

35. In the Statement of Cash Flows, U.S. GAAP views cash received in the form of interest and dividends as coming from _____. 
A. investing activities
B. operating activities
C. financing activities
D. exchange activities
E. economic activities

 

36. IFRS permits firms to classify cash from interest and dividend revenue as _____ activities, provided the classification is consistently applied across periods. 
A. operating
B. investing
C. financing
D. operating, investing, or financing
E. None of the above are correct.

 

37. U.S. GAAP requires that firms classify cash payments for interest expense as a(n) _____ activity. 
A. operating
B. financing
C. investing,
D. operating, investing, or financing
E. None of the above are correct.

 

38. Under U.S. GAAP, the classification of interest expense as a(n) _____ activity and dividends paid on common or preferred shares as a(n) _____ activity appears inconsistent to some observers as both are payments to suppliers of funds. 
A. operating; financing
B. investing; financing
C. financing; investing
D. financing; operating
E. investing; operating

 

39. Under U.S. GAAP, the classification of interest expense as an operating activity and dividends paid on common or preferred shares as a financing activity appears inconsistent to some observers as both are payments to suppliers of funds. Authoritative guidance requires the different treatments because 
A. interest is an expense in computing net income.
B. dividends represent a distribution of assets generated by net income not an expense reducing net income.
C. interest represent a distribution of assets generated by net income not an expense reducing net income.
D. dividends is an expense in computing net income.
E. both choices a and b are correct.

 

40. Both U.S. GAAP and IFRS permit considerable flexibility with respect to the display of information in the statement of cash flows. Firms must report cash flows from operations, investing, and financing for the _____.  
A. current year
B. current year and the prior year
C. current year and the prior two years
D. current year and the prior three years
E. current year and the prior four years

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more