Essay Questions
93. Indicate whether each of the following statements regarding the statement of cash flows (SCF) is true or false.
_____ a) Purchase of treasury stock would appear in the financing section of the SCF.
_____ b) Purchase of merchandise on account would appear in the financing section of the SCF.
_____ c) Payment of an account payable is an operating activity.
_____ d) Purchase of office supplies for cash would appear in the investing section of the SCF.
_____ e) Declarations of cash dividends would appear in the financing section of the SCF.
94. Indicate whether each of the following statements regarding the statement of cash flows (SCF) is true or false.
_____ a) Purchase of a certificate of deposit would appear in the financing activities section of the SCF.
_____ b) Sale of treasury stock would appear in the financing section of the SCF.
_____ c) Cash proceeds from the sale of a used truck would appear in the operating section of the SCF.
_____ d) Purchase of merchandise inventory would appear in the investing activities section of the SCF.
_____ e) Payment of salaries would appear in the operating section of the SCF.