69.A cash dividend paid to shareholders is reported on the:
A. Financing activities section of the statement of cash flows.
B. Balance sheet.
C. Income statement.
D. Operating activities section of the statement of cash flows.
70.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.
71.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.
72.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.
73.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.
74.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.
75.Which of the following indicates cash receipts?
A. Debit entries in the Notes Receivable account.
B. Credit entries in the Marketable Securities account.
C. Debit entries in the Notes Payable account.
D. Credit entries in the Accumulated Depreciation account.
76.Which method will yield the higher cash flows from financing activities?
A. The indirect method.
B. The direct method.
C. Both direct and indirect methods will yield the same amount.
D. Depends upon the situation.
77.An example of a non-cash investing or financing activity that is disclosed in a supplementary schedule accompanying the statement of cash flows is:
A. Recording depreciation expense for the current year.
B. Declaring, but not paying, dividends on common stock.
C. Selling land in exchange for a note receivable.
D. Transferring cash from a checking account into a money market fund.
78.When equipment is sold at a loss:
A. The net proceeds are shown in the investing section.
B. The book value of the asset is shown in the investing section.
C. The book value of the asset is shown in the investing section, and the loss is shown in the operating section.
D. The net proceeds are shown in the financing section.