The following item would be classified as a financing activity on the statement of cash flows:
Chapter 7: Funds Analysis, Cash Flow Analysis, and Financial PlanningJust click on the button next to each answer and you'll get immediate feedback.Note: Your browser must support JavaScript in order to use this quiz. Show
1.According to the accounting profession, which of the following would be considered a cash-flow item from an "investing" activity?cash inflow from interest income. cash inflow from dividend income. cash outflow to acquire fixed assets. all of the above. 2.According to the Financial Accounting Standards Board (FASB), which of the following is a cash flow from a "financing" activity?cash outflow to the government for taxes. cash outflow to shareholders as dividends. cash outflow to lenders as interest. cash outflow to purchase bonds issued by another company. 3.If the following are balance sheet changes: $5,005 decrease in accounts receivable $7,000 decrease in cash $12,012 decrease in notes payable $10,001 increase in accounts payable a "use" of funds would be the:$7,000 decrease in cash. $5,005 decrease in accounts receivable. $10,001 increase in accounts payable. $12,012 decrease in notes payable. 4.On an accounting statement of cash flows an "increase(decrease) in cash and cash equivalents" appears asa cash flow from operating activities. a cash flow from investing activities. a cash flow from financing activities. none of the above. 5.Uses of funds include a (an):decrease in cash. increase in any liability. increase in fixed assets. tax refund. 6.Which of the following would be included in a cash budget?depreciation charges. dividends. goodwill. patent amortization. 7.An examination of the sources and uses of funds statement is part of:a forecasting technique. a funds flow analysis. a ratio analysis. calculations for preparing the balance sheet. 8.Which of the following is NOT a cash outflow for the firm?depreciation. dividends. interest payments. taxes. 9.Which of the following would be considered a use of funds?a decrease in accounts receivable. a decrease in cash. an increase in account payable. an increase in cash. 10.The cash flow statement in the United States is most likely to appear usinga "supplementary method." a "direct method." an "indirect method." a "flow of funds method." 11.For a profitable firm, total sources of funds will always total uses of funds.be equal to be greater than be less than have no consistent relationship to Retake Quiz Multiple-Choice Quiz questions are Copyright © by Pearson Education Limited. Used by permission. All rights reserved. Previous Quiz | Back to Main Index | Next QuizReporting Requirements for Annual Financial Reports of State Agencies and Universities General Accounting Use the following four categories of activities to classify cash transactions:
Generally, cash receipts and cash payments are reported as gross rather than net. Two exceptions to the gross reporting are:
Which of the following items would be classified as financing activities in a statement of cash flows?Financing activities. include cash activities related to noncurrent liabilities and owners' equity. Noncurrent liabilities and owners' equity items include (1) the principal amount of long-term debt, (2) stock sales and repurchases, and (3) dividend payments.
What are financing activities in cash flow?Cash flow from financing activities is a section of a company's cash flow statement, which shows the net flows of cash that are used to fund the company. Financing activities include transactions involving debt, equity, and dividends.
Which of the following is an example of a financing activity on the cash flow statement under US GAAP?Payment of dividends is a financing activity under US GAAP. Payment of interest and receipt of dividends are included in operating cash flows under US GAAP.
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