51.Free cash flow is the measure of operating cash flow available for corporate purposes after providing sufficientfixed asset additions to maintain current productive capacity.
a.True
b.False
52.Which of the following is
notone of the four basic financial statements?
a.balance sheet
b.statement of cash flows
c.statement of changes in financial position
d.income statement
54.On the statement of cash flows, the cash flows from operating activities section would include
a.receipts from the issuance of capital stock
b.receipts from the sale of investments
c.payments for the acquisition of investments
d.cash receipts from sales activities
55.Preferred stock issued in exchange for land would be reported in the statement of cash flows in
a.the cash flows from financing activities section
b.the cash flows from investing activities section
c.a separate schedule
d.the cash flows from operating activities section
56.Cash paid to purchase long-term investments would be reported in the statement of cash flows in
a.the cash flows from operating activities section
b.the cash flows from financing activities section
c.the cash flows from investing activities section
d.a separate schedule
57.Which of the following would
notbe found in a schedule of noncash investing and financing activities, reported atthe end of a statement of cash flows?
a.equipment acquired in exchange for a note payable
b.bonds payable exchanged for capital stock
c.purchase of treasury stock
d.capital stock issued to acquire fixed assets
58.Which of the following does
notrepresent an outflow of cash and therefore would
notbe reported on thestatement of cash flows as a use of cash?
a.purchase of noncurrent assets
b.purchase of treasury stock
c.discarding an asset that had been fully depreciated
d.payment of cash dividends
59.Which of the following represents an inflow of cash and therefore would be reported on the statement of cashflows?
a.retirement of bond payable
b.acquisition of treasury stock
c.declaration of stock dividends
d.issuance of long-term debt
60.A ten-year bond was issued at par for $250,000 cash. This transaction should be shown on a statement of cashflows under
a.investing activities
b.financing activities
c.noncash investing and financing activities
d.operating activities