Cash flow example from an investing activity isa.Issue of Equityb.Redemption of Debenturec.Purchase of Raw Materials for Cashd.Sale of Investment

Cash Flow is a statement which shows the inflow and outflow of the transactions related to cash. It…

Answered: Cash flow example from an investing…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 13MCQ

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The increase of acc. Receivable can be include in Inflow in investing activities O Outflow in operation Inflow in operation. O Inflow in the financing activities.
Cash flows relating to asset held for rental to others are classified asA. OperatingB. FinancingC. InvestingD. Either Investing or Operating
Cash paid to purchase long-term investments would be reported in a. a separate schedule of noncash investing and financing activities b. the investing activities section of the statement of cash flows c. the financing activities section of the statement of cash flows d. the operating activities section of the statement of cash flow
Cash paid to purchase long-term investments would be reported in the Statement of Cash Flows as: Multiple Choice a deduction from the Investing section an addition to the Investing section a deducțion from the Operating section an addition to the Financing section
Cash receipts by issuing share areA. Cash inflows from investing activitiesB. Cash inflows from financing activitiesC. Cash outflows for investing activitiesD. Cash outflows for financing activities
Accounting type Question: Sale of long term investment indicates: A. a change in current assets B. application of funds C. increase in working capital D. source of funds
The statement of cash flows reports the cash proceeds from issuing a bond as a cash flow from Select one: a. Investing activities. b. Asset activities. c. Operating activities. d. Financing activities. The primary advantage of making investment decisions based on the net present value method, instead of the payback period, is that the net present value method Select one: a. Considers depreciation expense as part of the investment’s cash flows. b. Is easier to compute then the payback period. c. Conforms to generally accepted accounting principles. d. Factors the time value of money in its calculations. A firm with an investment opportunity whose internal rate of return was lower than its cost of capital would Select one: a. Use the payback period method to make the investment decision. b. Possibly make the investment. c. Make the investment. d. Not make the investment.
Working capital is an indication of the firm’s ________.A. asset utilizationB. amount of noncurrent liabilitiesC. liquidityD. amount of noncurrent assets
Which of the following is included in the cash flows from financing activities section of the statement of cash flows? Multiple Choice Purchase of investments. Interest expense. Purchase of treasury stock. Sale of equipment. Interest revenue.
Working Capital Management is concerned with management of Select one: a. Long term capital b. Current Assets c. Profits d. Fixed Assets
Cash inflows from sales of investments will appear in the section on the Statement of Cash Flows. Financing Investing Operating
Capital gearing ratio indicates the relationship between A. assets and capital B. loans and capital C. equity shareholders fund and long term borrowed funds D. debentures and share capital

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Cash flow example from an investing activity is a. Issue of Equity b. Redemption of Debenture c. Purchase of Raw Materials for Cash d. Sale of Investment