Financial Accounting, 8th Edition
8th Edition
ISBN: 9780078025556
Author: Robert Libby, Patricia Libby, Daniel Short
Publisher: McGraw-Hill Education
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Chapter 12, Problem 5MCQ
To determine
Identify the item that would not appear in the investing section of the statement of
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Which of the following would not appear in the investingsection of the statement of cash flows?a. Purchase of inventory.b. Sale of investments.c. Purchase of land.d. All of the above would appear in the investing sectionof the statement of cash flows.
In a statement of cash flows, indicate which of the following does NOT correspond to investment activities:
Select one:
a. Purchase of property, plant and equipment assets.
b. Loan granted to company officials.
c. Compensation received from the insurer for warehouse destroyed by fire.
d. Sale of investments to negotiate (trading
Which of the following would be considered a cash outflow for investing activities? a. cash paid to purchase product for inventory b. cash paid to reacquire common stock c. cash paid to repay debt d. cash paid to purchase equipment
Chapter 12 Solutions
Financial Accounting, 8th Edition
Ch. 12 - Prob. 1QCh. 12 - Prob. 2QCh. 12 - Prob. 3QCh. 12 - What are the major categories of business...Ch. 12 - Prob. 5QCh. 12 - Prob. 6QCh. 12 - Prob. 7QCh. 12 - Prob. 8QCh. 12 - Compare the two methods of reporting cash flows...Ch. 12 - Prob. 10Q
Ch. 12 - Prob. 11QCh. 12 - What are noncash investing and financing...Ch. 12 - Prob. 13QCh. 12 - Prob. 1MCQCh. 12 - Prob. 2MCQCh. 12 - Prob. 3MCQCh. 12 - Prob. 4MCQCh. 12 - Prob. 5MCQCh. 12 - Prob. 6MCQCh. 12 - Prob. 7MCQCh. 12 - Prob. 8MCQCh. 12 - Prob. 9MCQCh. 12 - Prob. 10MCQCh. 12 - Prob. 1MECh. 12 - Determining the Effects of Account Changes on Cash...Ch. 12 - Prob. 3MECh. 12 - Prob. 4MECh. 12 - Prob. 5MECh. 12 - Prob. 6MECh. 12 - Prob. 7MECh. 12 - Prob. 1ECh. 12 - Prob. 2ECh. 12 - Prob. 3ECh. 12 - Prob. 4ECh. 12 - Prob. 5ECh. 12 - Prob. 6ECh. 12 - Prob. 7ECh. 12 - Prob. 8ECh. 12 - Prob. 9ECh. 12 - Prob. 10ECh. 12 - Inferring Balance Sheet Changes from the Cash Flow...Ch. 12 - (Chapter Supplement B) Computing and Reporting...Ch. 12 - During the period, Sanchez Company sold some...Ch. 12 - Prob. 14ECh. 12 - Prob. 15ECh. 12 - Prob. 16ECh. 12 - Prob. 17ECh. 12 - Prob. 18ECh. 12 - Prob. 19ECh. 12 - Prob. 20ECh. 12 - Prob. 21ECh. 12 - Prob. 22ECh. 12 - Prob. 1PCh. 12 - Prob. 2PCh. 12 - Prob. 3PCh. 12 - Prob. 4PCh. 12 - Prob. 5PCh. 12 - Prob. 6PCh. 12 - Prob. 1APCh. 12 - Prob. 2APCh. 12 - Prob. 3APCh. 12 - Prob. 1CPCh. 12 - Prob. 2CPCh. 12 - Prob. 3CPCh. 12 - Prob. 4CPCh. 12 - Prob. 5CPCh. 12 - Prob. 6CPCh. 12 - Prob. 1CC
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- Which of the following represents a source of cash in the investing section? A. sale of investments B. depreciation expense C. decrease in accounts receivable D. decrease in bonds payablearrow_forwardWhich of the following would be classified as a cash outflow from an operating activity? a. Purchase of an investment b. Payment of dividends c. Purchase of equipment d. Payment of goods purchased from suppliersarrow_forwardWhich of these transactions would not be part of the cash flows from the operating activities section of the statement of cash flows? A. credit purchase of inventory B. sales of product, for cash C. cash paid for purchase of equipment D. salary payments to employeesarrow_forward
- Which of the following should be shown on a statement of cash flows under the financing activities section? a. the purchase of a long-term investment in the common stock of another company b. the payment of cash to retire a long-term note c. the proceeds from the sale of a building d. the issuance of a long-term note to acquire landarrow_forwardWhich of the following items is not considered an investing cash flow in the statement of cash flows? a. Purchase of equipment. b. Purchase of securities. c. Issuing common stock for cash. d. Sale of land.arrow_forwardWhich of the following is not an example of investing cash flows? A. payment for purchase of land and buildingsB. cash receipt from sale of equipmentC. payment for purchase of equipmentD. cash receipt from sale of land and buildingsE. all of the examples are cash flow for investing activitiesarrow_forward
- Which of the following is not reported as a cash flow from investing activities? A- Selling a long-term investment at a loss for cash B- Sale of depreciable asset for cash C- Purchase of a patent in exchange for cash D- Purchasing land in exchange for common stockarrow_forwardWhich of the following is NOT shown in the correct category on the statement of cash flows? Dividends paid are financing cash outflows. A rent payment on a building is an operating cash outflows. Cash paid to buy a building is an investing cash outflow. O Payment for the purchase of inventory is an operating cash outflow All of the above are in the correct category.arrow_forwardWhich of the following would be subtracted from net income when determining cash flows from operating activities? A. Decreade in prepaid insurance B. Depreciation expense C. Increase in accounts payable D. Gain on the sale of a Depreciation assetarrow_forward
- Which one of the following is NOT an example of cash flows in operating activities according to direct method? Select one: a. Cash received from debtors b. Cash sales of goods and services c. Adding back depreciation expense d. Cash payment for purchase of inventoriesarrow_forwardWhich of the following is a cash inflow from an investing activity? A. Borrowing from a bank B. Sale of preferred stock C. Sale of commercial real estate D. Purchase of Landarrow_forwardWhich of the following cash activities would be listed in the Investing Activities section of the statement of cash flows? a.Cash received from customers b.Depreciation expense on factory building c.Cash paid for purchasing equipment d.Cash paid for purchasing inventoryarrow_forward
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