None true or false 12) The issuance of long-term debt results in a cash outflow as reported in the financingsection. 13) Investing activities involve obtaining resources as a borrower and repaying creditors. 14)Issuing equity securities is an operating activity on the statement of cash flows. 15) Payment of dividendsis a financing activity

The above answers can be explained as under - 12) The statement is true because, the financing…

Answered: true or false 12) The issuance of…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter16: Statement Of Cash Flows

Section: Chapter Questions

Problem 11Q: Note payments reduce cash and are related to long-term debt. Do these facts automatically lead to...

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Note payments reduce cash and are related to long-term debt. Do these facts automatically lead to their inclusion as elements of the financing section of the statement of cash flows? Explain.
Paying off bonds payable is reported on the statement of cash flows undera. noncash investing and financing activities.b. financing activities.c. operating activities.d. investing activities.
Interest payments to creditors are reported in a statement of cash flows as Select one: a. An operating activity b. An investing activity c. A borrowing activity d. A financing activity
Which of the following is included in the cash flows from financing activities section of the statement of cash flows? O A. Interest received from borrowers.O B. Purchase of stock in another company.O C. Purchase of treasury stock.O D. Interest paid to lenders.
When a company borrows funds from creditors, it is considered a form of: Select one: A. equity financing. B. debt financing.
On the statement of cash flows, the cash flows from investing activities section would include a. payments for retirement of bonds payable b. receipts from the issuance of common stock c. payments for dividends d. receipts from the sale of investments
Which of the following statements accurately describes the statement of cash flows? A. It indicates when long-term debt will mature. B. It shows the relative proportion of debt and assets. C. It is the link between net income and earnings per share. D. It is the link between the accrual-based income statement and the cash reported on the balance sheet.
9.When the Indirect Method is used to prepare the Statement of Cash Flows, the amortization of a premium in bonds payable is taken into account when computing the cash that comes from Select one: a. investment activities. b. operational activities. c. operational activities and financing activities. d. financing activities
In preparing a statement of cash flows, which of the following transactions would be considered an investing activity? a. Issuance of bonds payable at a discount b. Sale of an operating segment c. Issue of share capital d. Purchase of treasury shares
In what section of the balance sheet should the following items appear, and what balance sheet terminology would you use? a. Treasury stock (recorded at cost). b. Checking account at bank. c. Land (held as an investment). d. Sinking fund. e. Unamortized premium on bonds payable. f. Copyrights. g. Pension fund assets. h. Premium on common stock. i. Long-term investments (pledged against bank loans payable).
6. Collecting of receivables and liquidation of assets concerns: Sources of funds; Uses of funds; Revenues: 7. Uses of funds are: Increase in a liability account and increase in an asset account; Payment of dividends and decrease in asset account; Increase in an asset account and payment of dividends; 8. New bank loan can be defined as: Source of funds; Uses of funds; Benefit; 9. Shareholders' equity is composed of: Earnings retained by the firm: Investments by the shareholders; A+B
Question Content Area On the statement of cash flows, the financing activities section would include all of the following except a. cash paid for dividends b. cash received from the sale of bonds payable c. cash paid for the purchase of treasury stock d. cash paid for the interest on bonds payable

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