Which is an example of a cash flow from an investing activity
Which is an example of a cash flow from an investing activity?
Receipt of cash from the sale of equipment
Payment of cash to suppliers for inventory
Payment of cash to repurchase outstanding capital stock
Receipt of cash from the issuance of bonds payable
2. Hanover, Inc. purchased land through the issuance of long-term bonds. How is this reported on the statement of cash flows?
Investing inflow
Financing outflow
Significant noncash investing and financing activity that merits disclosure
Operating activity
3. Under the indirect method of preparing the statement of cash flows, which of the following is added to net income in the operating activities section?
Decrease in accounts payable
Increase in accounts receivable
Gain on sale of equipment
Depreciation expense
4. In what section of the statement of cash flows will the issuance of bonds payable to acquire a building be reported?
Cash flows from financing activities
Noncash investing and financing activities
Cash flows from investing activities
Cash flows from operating activities
5. Which of the following items is reported in the operating activities section of a statement of cash flows prepared using the direct method?
Depreciation expense
Loss on sale of building
Cash payments to suppliers
Increase in accounts receivable
6. In horizontal analysis of a balance sheet, of what amount is each item expressed as a percentage?
Base-year amount
Current year total assets amount
Current year net income amount
Current year stockholdersâ equity amount
7. The following schedule is a display of what type of analysis?
Amount Percent Current assets$200,00025%Property, plant, and equipment600,00075%Total assets$800,000100%
Ratio analysis
Vertical analysis
Horizontal analysis
Trend analysis
8. Ceradyne, Inc. presented the following data for a company:
Current liabilities$360Long-term debt480Common stock640Retained earnings520Total liabilities & stockholdersâ equity$2,000
How would common stock appear on a common size balance sheet using vertical analysis?
32.0%
75.0%
Cannot be determined from the data given
55.1
