1. Question: Preferred stock converted into common stock 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: An amortization of a bond discount would be shown __________________.

    A
    as an add-back to net income when determining cash flow from operations

    B
    as a deduction from net income when determining cash flow from operations

    C
    in the financing section

    D
    None of these

    Note: Not available
    1. Report
  3. Question: When determining cash flow from operations, which of the following would NOT be deducted from net income?

    A
    Increase in accounts receivable

    B
    Loss on sale of equipment

    C
    Amortization of bond premium

    D
    Decrease in accounts payable

    Note: Not available
    1. Report
  4. Question: Which of the following statements about depreciation expense is true?

    A
    Depreciation expense increases the expense for a period but does not use cash.

    B
    When determining funds from operations, depreciation expense that had originally been subtracted in computing net income is added back to net income, but it is not a use of cash.

    C
    Depreciation expense is not a source of funds.

    D
    All of these statements are true.

    Note: Not available
    1. Report
  5. Question: Which of the following transactions would be shown on a cash flow statement, but does not affect cash?

    A
    Sale of bonds for cash

    B
    Exchange of land for stock

    C
    Collection of customer accounts

    D
    Payment of dividends to owners

    Note: Not available
    1. Report
  6. Question: When determining cash flow from operations, which of the following would NOT be deducted from net income?

    A
    Gain on sale of a building

    B
    Gain on sale of equipment

    C
    Gain on sale of marketable securities

    D
    All of these

    Note: Not available
    1. Report
  7. Question: An investment in the stock of another company 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
  8. Question: Which of the following typically happens during the maturation phase of a product's life cycle?

    A
    Cash outflow exceeds cash inflow from operations.

    B
    Cash outflow exceeds cash inflow from investing activities.

    C
    Cash inflow exceeds cash outflow from financing activities.

    D
    All of these

    Note: Not available
    1. Report
  9. Question: Paying previously declared dividends 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
  10. Question: Treasury stock purchased 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
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