71.The order of presentation of activities on the statement of cash flows is
a.operating, investing, and financing
b.operating, financing, and investing
c.financing, operating, and investing
d.financing, investing, and operating
72.Financing activities include
a.lending money
b.acquiring investments
c.issuing debt
d.acquiring long-lived assets
73.Depreciation on factory equipment would be reported in the statement of cash flows prepared by the indirectmethod 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
74.Which of the following should be added to net income in calculating net cash flow from operating activities usingthe indirect method?
a.an increase in inventory
b.a decrease in accounts payable
c.preferred dividends declared and paid
d.a decrease in accounts receivable
75.Which of the following should be deducted from net income in calculating net cash flow from operating activitiesusing the indirect method?
a.depreciation expense
b.gain on sale of land
c.a loss on the sale of equipment
d.dividends declared and paid
76.Which of the following increases cash?
a.depreciation expense
b.acquisition of treasury stock
c.borrowing money by issuing a six-month note
d.the declaration of a cash dividend
77.Which of the following would
notbe classified as an operating activity?
a.interest expense
b.income taxes
c.payment of dividends
d.selling expenses
78.Which of the following should be added to net income in calculating net cash flow from operating activities usingthe indirect method?
a.a gain on the sale of land
b.a decrease in accounts payable
c.an increase in accrued liabilities
d.dividends paid on common stock
79.On the statement of cash flows prepared by the indirect method, a $50,000 gain on the sale of investments wouldbe
a.deducted from net income in converting the net income reported on the income statement to cash flows fromoperating activities
b.added to net income in converting the net income reported on the income statement to cash flows fromoperating activities
c.added to dividends declared in converting the dividends declared to the cash flows from financing activitiesrelated to dividends
d.deducted from dividends declared in converting the dividends declared to the cash flows from financingactivities related to dividends
80.Accounts receivable from sales transactions were $51,000 at the beginning of the year and $64,000 at the end ofthe year. Net income reported on the income statement for the year was $105,000. Exclusive of the effect ofother adjustments, the cash flows from operating activities to be reported on the statement of cash flows preparedby the indirect method is
a. $105,000
b. $118,000
c. $92,000
d. $169,000