D103 - Intermediate Accounting I

Question 41: How is the sale of equipment reported on the statement of cash flows?

Operating Activity

Investing Activity

Financing Activity

Non-cash Activity

Question 42: What should be done with gains on the sale of equipment in the cash flow statement?

Deduct from net income

Add to net income

Ignore in cash flows

Report as a non-cash transaction

Question 43: Which activity involves obtaining cash from creditors?

Operating Activity

Financing Activity

Investing Activity

Non-operating Activity

Question 44: What is the primary purpose of the statement of cash flows?

To show profitability over time

To report net income

To provide information about cash receipts and payments

To show the financial position of a company

Question 45: Which section of the statement of cash flows reports cash effects of transactions that enter into the determination of net income?

Financing Activities

Investing Activities

Operating Activities

Non-operating Activities

Question 46: What is included in cash flows from investing activities?

Cash received from issuing stock

Cash paid for inventory

Cash received from the sale of fixed assets

Cash paid for salaries

Question 47: How are cash dividends reported in the statement of cash flows?

Operating Activities

Investing Activities

Financing Activities

Non-cash Activities

Question 48: Which financial statement summarizes the operating, investing, and financing activities of an entity over a period?

Balance Sheet

Income Statement

Statement of Cash Flows

Statement of Stockholders' Equity

Question 49: Which activity would result in cash outflow for a company?

Issuing new shares

Receiving cash from a customer

Paying off a loan

Selling equipment

Question 50: Which type of cash flow activity includes making and collecting loans?

Financing Activities

Operating Activities

Investing Activities

Non-operating Activities

D103 Intermediate Accounting I - Set 1 - Part 3

Question 41: How is the sale of equipment reported on the statement of cash flows?

Question 42: What should be done with gains on the sale of equipment in the cash flow statement?

Question 43: Which activity involves obtaining cash from creditors?

Question 44: What is the primary purpose of the statement of cash flows?

Question 45: Which section of the statement of cash flows reports cash effects of transactions that enter into the determination of net income?

Question 46: What is included in cash flows from investing activities?

Question 47: How are cash dividends reported in the statement of cash flows?

Question 48: Which financial statement summarizes the operating, investing, and financing activities of an entity over a period?

Question 49: Which activity would result in cash outflow for a company?

Question 50: Which type of cash flow activity includes making and collecting loans?

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