Question 1

Which of the following items is reported on the statement of cash flows under financing activities?

Accepted Answer

A)  Declaration of a stock dividend.
B)  Stock split.
C)  Payment of a cash dividend.
D)  Payment of a stock dividend.
E)  Declaration of a cash dividend.F) B) and D)
G) A) and E)

Question 2

Conversion of preferred stock to common stock is disclosed in the financing section of the statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 3

The indirect method for the preparation of the operating activities section of the statement of cash flows:

Accepted Answer

A)  Separately lists each major item of operating cash payments.
B)  Is required if the company is a merchandiser.
C)  Must not be used in all circumstances.
D)  Separately lists each major item of operating cash receipts.
E)  Reports net income and then adjusts it for items necessary to determine net cash provided or used by operating activities.F) B) and D)
G) B) and E)

Question 4

The appropriate section in the statement of cash flows for reporting the receipt of cash dividends from investments in securities is:

Accepted Answer

A)  Investing activities.
B)  Schedule of noncash investing or financing activity.
C)  Financing activities.
D)  Operating activities.
E)  This is not reported on the statement of cash flows.F) B) and D)
G) All of the above

Question 5

Managers only use the cash flow statement to evaluate the net cash increase or decrease, and do not pay much attention to the details of cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities.

Accepted Answer

A) True 
 B)False

Question 6

A purchase of land in exchange for a long-term note payable is reported in the investing section of the statement of cash flows.

Accepted Answer

A) True 
 B)False

Exam 16: Reporting the Statement of Cash Flows

Managers only use the cash flow statement to evaluate the net cash increase or decrease, and do not pay much attention to the details of cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities.

Correct Answer
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A purchase of land in exchange for a long-term note payable is reported in the investing section of the statement of cash flows.

Correct Answer
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The indirect method for the preparation of the operating activities section of the statement of cash flows:

Correct Answer
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Which of the following items is reported on the statement of cash flows under financing activities?

Correct Answer
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The appropriate section in the statement of cash flows for reporting the receipt of cash dividends from investments in securities is:

Correct Answer
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Conversion of preferred stock to common stock is disclosed in the financing section of the statement of cash flows.

Correct Answer
verified

Exam 16: Reporting the Statement of Cash Flows

Managers only use the cash flow statement to evaluate the net cash increase or decrease, and do not pay much attention to the details of cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities.

Correct AnswerverifiedShow Answer

A purchase of land in exchange for a long-term note payable is reported in the investing section of the statement of cash flows.

Correct AnswerverifiedShow Answer

The indirect method for the preparation of the operating activities section of the statement of cash flows:

Correct AnswerverifiedShow Answer

Which of the following items is reported on the statement of cash flows under financing activities?

Correct AnswerverifiedShow Answer

The appropriate section in the statement of cash flows for reporting the receipt of cash dividends from investments in securities is:

Correct AnswerverifiedShow Answer

Conversion of preferred stock to common stock is disclosed in the financing section of the statement of cash flows.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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