1. Question: Warranties payable that increased during the year would appear in which of the following sections of the cash flow statement?

    A
    Operating section

    B
    Investing section

    C
    Financing section

    D
    It would not appear on the statement.

    Note: Not available
    1. Report
  2. Question: The acquisition of a building and/or land by entering into a lease that meets the capital lease criteria would appear in which of the following sections of the cash flow statement?

    A
    Operating section

    B
    Investing section

    C
    Financing section

    D
    It would not appear on the statement.

    Note: Not available
    1. Report
  3. Question: Depreciation recorded on equipment would appear in which of the following sections of the cash flow statement?

    A
    Operating section

    B
    Investing section

    C
    Financing section

    D
    It would not appear on the statement.

    Note: Not available
    1. Report
  4. Question: Which of the following would be shown in the investing section of a cash flow statement?

    A
    Acquisition of equipment through a capital lease

    B
    Acquisition of treasury stock

    C
    Retirement of long-term debt

    D
    None of these

    Note: Not available
    1. Report
  5. Question: Cash borrowed from a bank by issuing a short-term note payable would appear in which of the following sections of the cash flow statement?

    A
    Operating section

    B
    Investing section

    C
    Financing section

    D
    It would not appear on the statement.

    Note: Not available
    1. Report
  6. Question: Collecting receivables will cause cash to ______________ .

    A
    increase

    B
    decrease

    C
    show no change

    D
    The effect on cash cannot be determined based on given information.

    Note: Not available
    1. Report
  7. Question: In 2007, XYZ Company had a net income of $150,000 and reported the following: Depreciation expense: $21,000 Issuance of debt: $120,000 Loss on sale of equipment: $23,000 Purchase of building: $110,000 Increase in inventory: $12,000 Given this data, the amount of cash flow from operations was ______________.

    A
    $182,000

    B
    $171,000

    C
    $159,000

    D
    $138,000

    Note: Not available
    1. Report
  8. Question: Preferred stock issued for cash would appear in which of the following sections of the cash flow statement?

    A
    Operating section

    B
    Investing section

    C
    Financing section

    D
    It would not appear on the statement.

    Note: Not available
    1. Report
  9. Question: The most popular method of presenting cash from operations in a cash flow statement is the _________________.

    A
    direct method

    B
    operations method

    C
    indirect method

    D
    funds method

    Note: Not available
    1. Report
  10. Question: The amortization of a recorded patent would appear in which of the following sections of the cash flow statement?

    A
    Operating section

    B
    Investing section

    C
    Financing section

    D
    It would not appear on the statement.

    Note: Not available
    1. Report
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