1. Question: A cash flow statement is typically prepared _____________________.

    A
    before the balance sheet is prepared

    B
    after the balance sheet is prepared but before the income statement is prepared

    C
    after the income statement is prepared but before the balance sheet is prepared

    D
    after both the balance sheet and the income statement are prepared

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

    A
    Retirement of long-term debt

    B
    Retirement of preferred stock

    C
    Acquisition of treasury stock

    D
    None of these

    Note: Not available
    1. Report
  3. Question: The sale of equipment for cash with a recognized loss 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: An increase in the accounts payable balance 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
  5. Question: Pre-paying a one-year insurance policy 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
  6. 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
  7. 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
  8. 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
  9. 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
  10. 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
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