Which of the following items would be presented in a cash flow statement? Group of answer choices Proceeds from the issue of debentures Refinancing of long-term debt Payment of dividends through a share investment scheme Acquisition of an investment in a subsidiary for consideration consisting of an exchange of non-current assets and liabilities

Which of the following items would be presented in a cash flow statement? Group of answer choices Proceeds from the issue of debentures Refinancing of long-term debt Payment of dividends through a share investment scheme Acquisition of an investment in a subsidiary for consideration consisting of an exchange of non-current assets and liabilities

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 20MCQ

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Which of the following constitutes an internal source of funds Oa. Corporate bonds b. Common stock Oc Commercial paper O d. Retained earnings and amortization cash flow
Which of the following types of transactions would be reported as a cash flow from investing activity on the statement of cash flows? Group of answer choices issuance of bonds payable issuance of capital stock purchase of treasury stock purchase of noncurrent assets
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
Which of the following may take the form of dividend income and/or capital appreciation? a. bond investments b.gain from an investment c.equity investments d.expected rate of return
Cash receipts from share issuances are: a. operating activities b. financing activities c. investing activities d. not part of statement of cash flows
In preparing a statement of cash flow, sale of treasury shares at an amount greater than cost would be classified as a/an a. operating activity b. investing activity c. financing activity d. share capital activity
Which of the following should be deducted from net incomein calculating net cash flow from operating activities using the indirect method? Group of answer choices a loss on sale of long-term investments a increase in accounts payable a increase in accounts receivable preferred dividends declared and paid
Which of the following need not be disclosed in a schedule accompanying the statement of cash flows as an investing and financing activity not affecting cash? a. acquisition of fixed assets in exchange for capital stock b. dividend distributed in capital stock of the company (stock dividend) c. retirement of a bond issue through the issuance of another bond issue d. conversion of convertible debt to capital stock
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
Why are investments in marketable securities shown sepa-rately from cash equivalents in the balance sheet?
How is the short term debt repayment capacity of a company is assessed ? Choose the INCORRECT OPTIONa) Current Ratio is analyzedb) Liquidity Ratios and the Cashc) Quick Ratio is analyzedd) The statement of Cash Flows is analyzed
Classifying Items in the Statement of Cash Flows The following items are commonly reported in a statement of cash flows (indirect method presentation). For each item 1 through 20, determine (a) in which section the item is presented (operating, investing, or financing) and (b) whether the associated dollar amount is added or subtracted in the statement. (a) (b) 1. Payments of short-term debt. AnswerOperatingInvestingFinancing AnswerAddSubtract 2. Repurchases of common stock. AnswerOperatingInvestingFinancing AnswerAddSubtract 3. Purchases of property and equipment. AnswerOperatingInvestingFinancing AnswerAddSubtract 4. Sale of investments classified as long-term. AnswerOperatingInvestingFinancing AnswerAddSubtract 5. Proceeds from the issuance of common stock. AnswerOperatingInvestingFinancing AnswerAddSubtract 6. Increase in prepaid expenses and other current assets. AnswerOperatingInvestingFinancing AnswerAddSubtract 7. Acquisition for cash of a competitor.…