11.2 Differentiate among cash flows from operating, investing, and financing activities
1) The three types of business activities on a cash flow statement are operating, investing, and management activities.
2) Operating activities reflect such things as purchasing fixed assets.
3) Current assets on the balance sheet would be affected by and be part of operating activities.
4) Which of the following is NOT a part of operating activities?
A) Paying dividends
B) Paying payables
C) Earnings revenue
D) Paying utilities
E) Depreciation expense
5) Which of the following is NOT a part of financing activities?
A) Paying dividends
B) Issuing shares
C) Paying off loans
D) Buying land
E) Borrowing money
6) Operating cash flows affect:
A) current assets and current liabilities.
B) long-term asset accounts.
C) equity accounts.
D) long-term liability accounts.
E) current assets.
7) What type of business activity would issuing stock be classified as on the cash flow statement?
8) The indirect method of formatting a cash flow statement starts with __________.
9) What type of accounts do investing cash flows affect?
10) What type of accounts do financing activities affect?