11) Which of the three types of activities reported on the statement of cash flows is the
most
critical for a company's long-term survival?
A) Investing activities
B) Operating activities
C) Financing activities
D) Noncash investing and financing activities
12) On the statement of cash flows, financing activities involve:
A) purchasing investments.
B) acquiring long-term assets.
C) lending money.
D) issuing notes payable.
13) On the statement of cash flows, investing activities include:
A) obtaining cash from creditors.
B) collecting cash on loans.
C) selling stock to stockholders.
D) repaying borrowed money.
14) Usually, the most important category on the statement of cash flows is cash flows from:
A) operating activities.
B) investing activities.
C) financing activities.
D) noncash activities.
15) Increases and decreases in the long-term assets are reported on the statement of cash flows as:
A) operating activities.
B) investing activities.
C) financing activities.
D) noncash activities.
16) Increases and decreases in the long-term liability accounts are reported on the statement of cash flows as:
A) operating activities.
B) investing activities.
C) financing activities.
D) noncash activities.
17) On a statement of cash flows, cash receipts from interest and dividends are classified as:
A) operating activities.
B) investing activities.
C) financing activities.
D) noncash activities.
18) Cash received from the issuance of bonds would be reported on a statement of cash flows under:
A) investing activities.
B) financing activities
C) operating activities.
D) noncash activities.
19) Where would income taxes paid appear on the statement of cash flows?
A) Operating activities
B) Investing activities
C) Financing activities
D) Noncash activities
20) Interest paid on debt would be reported on a statement of cash flows under:
A) financing activities.
B) investing activities.
C) operating activities.
D) noncash activities.