51. In a statement of cash flows, collections of accounts receivable are classified as:
A. Operating activities.
B. Financing activities.
C. Investing activities.
D. Revenues and Gains.
52. In a statement of cash flows, payments of dividends are classified as:
A. Operating activities.
B. Financing activities.
C. Investing activities.
D. Costs and Expenses
53. Which of the following would indicate a cash disbursement?
A. Selling equipment at a loss.
B. A decrease in accounts receivable.
C. An increase in prepaid expenses.
D. A decrease in inventory.
54. Which of the following does not decrease the cash flow from operating activities?
A. The prepayment of an expense.
B. The purchase of operating equipment.
C. The payment of interest.
D. All three decrease cash from operating activities.
55. Which of the following is not classified among the operating activities in a statement of cash flows?
A. Payment of interest on a bank loan.
B. Payment of the principal amount owed on a bank loan.
C. Payment of an account payable to a merchandise supplier.
D. Payment of income taxes.
56. Which of the following is not classified among the investing activities in a statement of cash flows?
A. Purchase of marketable securities for cash.
B. Collection of the principal amount of cash loans made to others.
C. Investment of cash made in the business by the owners.
D. Purchase of plant assets for cash.
57. Which of the following is not classified among the financing activities in a statement of cash flows?
A. Long-term borrowing.
B. Payment of dividends to stockholders.
C. Payment of interest to creditors.
D. Short-term borrowing.
58. Which of the following is an investing activity?
A. Purchase of equipment.
B. Payment of interest.
C. Issuing common stock.
D. Issuing long-term debt.
59. In a statement of cash flows, the term cash includes:
A. Only money on deposit in bank accounts.
B. Only bank accounts and cash on hand.
C. Bank accounts, cash on hand, and cash equivalents.
D. Bank accounts, cash on hand, cash equivalents, and marketable securities classified as current assets.
60. Which of the following is a financing activity?
A. Payment of interest.
B. Payment of dividends.
C. Making sales on account.
D. Paying off accounts payable.