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A transaction of issuance of shares in exchange for equipment would be recorded as a(n)

 A transaction of issuance of shares in exchange for equipment would be recorded as a(n)

A) operating activity.

B) investing activity.

C) financing activity.

D) noncash investing and financing activity.

 

22) A statement of cash flows would not disclose the effect of which of the following transactions?

A) Dividends received on stock investments

B) Receiving cash from customers on product sales

C) Discarding an asset that had been fully depreciated

D) None of these answers are correct.

23) When a corporation pays dividends it

A) does not affect the cash flow statement.

B) is shown as an investing activity.

C) is shown as a financing activity.

D) is shown as an operating activity.

 

24) A business issues 10-year bonds payable in exchange for common shares. This transaction would be reported on the statement of cash flows in

A) operating activities.

B) financing activities.

C) investing activities.

D) a separate schedule.

 

25) Common shares in exchange for a warehouse would be reported in the statement of cash flows in

A) a separate schedule.

B) operating activities.

C) financing activities.

D) investing activities.

 

26) If a gain of $70,000 is incurred in selling equipment having a book value of $225,000, cash flow will increase

A) $295,000.

B) $155,000.

C) $70,000.

D) $ some other number.

 

27) Land costing $60,000 was sold for $50,000. What was the effect on the investing activities?

A) Increase $50,000

B) Decrease $10,000

C) Decrease $70,000

D) Increase $10,000

28) The section of the statement of cash flows from investing activities includes

A) the sale or purchase of merchandise.

B) a decrease in inventory.

C) cash purchases of equipment.

D) a reduction in Accounts Receivable.

 

29) The purchase of plant and equipment for cash would result in

A) an increase in cash from investing activities.

B) a decrease in cash from investing activities.

C) an increase added to net income from operations.

D) a decrease subtracted from net income from operations.

 

30) Selling land for cash would result in

A) an increase of cash flow from investing activities.

B) a decrease of cash flow from investing activities.

C) an increase of cash flow from financing activities.

D) a decrease of cash flow from financing activities.

Dec 07 2019 Read more Less More

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