Accounting 2010 chapter 12

All except which of the following activities are reported on the statement of cash flows?
A. Operating activities
B. Marketing activities
C. Investing activities
D. Financing activities

Marketing activities

On the statement of cash flows, activities that create long-term liabilities are usually

Financing activities

On the statement of cash flows, activities affecting long-term assets are

Investing activities

On the statement of cash flows, activities that obtain the cash needed to launch and sustain a company are

Financing activites

On the statement of cash flows, the exchange of stock for land would be reported as which of the following.
A. Financing activities
B. Noncash investing and financing activities
C. Exchanges are not reported on the statement of cash flows
D. Investing activities

Noncash investing and financing activities

Paying off bonds payable is reported on the statement of cash flows under

Financing activities

The sale of inventory for cash is reported on the statement of cash flows under

Operating activities

Selling equipment for cash is reported on the statement of cash flows under

Investing activities

Which of the following terms appears on a statement of cash flows - indirect method?

Depreciation expense

On an indirect method statement of cash flows, an increase in a prepaid insurance would be

Deducted from net income

On an indirect method statement of cash flows, an increase in account payable would be

Added to net income in the operating activities section

On an indirect method statement of cash flows, a gain on the sale of plant assets would be

Deducted from net income in the operating activities section

A company uses the direct method to prepare the statement of cash flows. Select an activity for each of the following transaction:

1. Receiving cash dividends is a/an ____ activity
2. Paying cash dividends is a/an _____

1. Operating 2. Financing activity

Accounting 2010 chapter 12 - Subjecto.com

Accounting 2010 chapter 12

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All except which of the following activities are reported on the statement of cash flows?
A. Operating activities
B. Marketing activities
C. Investing activities
D. Financing activities

Marketing activities

On the statement of cash flows, activities that create long-term liabilities are usually

Financing activities

On the statement of cash flows, activities affecting long-term assets are

Investing activities

On the statement of cash flows, activities that obtain the cash needed to launch and sustain a company are

Financing activites

On the statement of cash flows, the exchange of stock for land would be reported as which of the following.
A. Financing activities
B. Noncash investing and financing activities
C. Exchanges are not reported on the statement of cash flows
D. Investing activities

Noncash investing and financing activities

Paying off bonds payable is reported on the statement of cash flows under

Financing activities

The sale of inventory for cash is reported on the statement of cash flows under

Operating activities

Selling equipment for cash is reported on the statement of cash flows under

Investing activities

Which of the following terms appears on a statement of cash flows – indirect method?

Depreciation expense

On an indirect method statement of cash flows, an increase in a prepaid insurance would be

Deducted from net income

On an indirect method statement of cash flows, an increase in account payable would be

Added to net income in the operating activities section

On an indirect method statement of cash flows, a gain on the sale of plant assets would be

Deducted from net income in the operating activities section

A company uses the direct method to prepare the statement of cash flows. Select an activity for each of the following transaction:

1. Receiving cash dividends is a/an ____ activity
2. Paying cash dividends is a/an _____

1. Operating 2. Financing activity

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