41. Cash flows from operating activities include all of the following except:
A. Collections from customers for sales of goods
B. Interest and dividends received
C. Payments of interest
D. Payments of dividends
42. Cash flows from investing activities include all of the following except:
A. Cash proceeds from selling investments
B. Cash proceeds from collections on loans
C. Cash advanced to borrowers
D. Cash proceeds from borrowing
43. All of the following are considered cash equivalents except
A. Marketable securities
B. Money market funds
C. Commercial paper
D. Treasury bills
44. Net income differs from net cash flows from operations because of all the following except:
A. Non-cash expenses such as depreciation.
B. Timing differences between recognizing revenue and expenses and their cash flows.
C. Gains and losses included in net income but classified as investing or financings activities.
D. All of the above will cause a difference between net income and cash flows.
45. All of the following are financing activities except:
A. Borrowing money
B. Lending money
C. Selling capital stock
D. Paying dividends
46. A stock dividend is reported on the
A. Financing section of the statement of cash flows
B. Balance sheet
C. Income statement
D. Operating section of the statement of cash flows
47. A statement of cash flows is not intended to assist investors in evaluating:
A. Reasons for differences between the amount of net income and net cash flow from operations.
B. The company's ability to meet its obligations and to pay dividends.
C. Non-cash aspects of investing and financing activities.
D. The profitability of business operations.
48. The "bottom line" in a statement of cash flows shows:
A. The cash (including cash equivalents) on the balance sheet at the end of the period.
B. Net increase or decrease in cash during the period.
C. Net income, computed by the cash basis of accounting.
D. Net cash flow from operating activities.
49. In the statement of cash flows, the purchase of supplies is classified as:
A. Operating activities.
B. Financing activities.
C. Investing activities.
D. None of the above.
50. In a statement of cash flows, cash transactions are classified into three major categories. Which of the following is not one of these three categories?
A. Managing activities.
B. Operating activities.
C. Financing activities.
D. Investing activities.