Learning Objective 9-6
1) A source of cash from operating activities is ________.
A) proceeds from a loan
B) collection of an account receivable
C) cash received from the sale of used equipment
D) cash received from the sale of treasury stock
2) A use of cash for operating activities is ________.
A) payment of an account payable
B) payment of dividends
C) cash used to buy equipment
D) cash used to purchase treasury stock
3) A source of cash from investing activities is ________.
A) proceeds from a loan
B) collection of an account receivable
C) cash received from the sale of used equipment
D) cash received from the sale of treasury stock
4) A use of cash for investing activities is ________.
A) payment of an account payable
B) payment of dividends
C) cash used to buy equipment
D) cash used to purchase treasury stock
5) Cash used for investing activities includes cash ________.
A) collected from customers
B) paid for land
C) paid for interest
D) paid for dividends
6) A use of cash for financing activities is ________.
A) payment of an account payable
B) payment of interest
C) cash used to buy equipment
D) cash used to purchase treasury stock
7) A source of cash from financing activities is ________.
A) issuing of a note receivable
B) collection of an account receivable
C) cash received from the sale of treasury stock
D) collection of a note receivable
8) Cash involved in financing activities includes cash ________.
A) collected from customers
B) paid for land
C) paid for interest
D) paid for dividends
9) Team Shirts, Inc. had net cash from operating activities of $50,000. It paid $40,000 to buy a new computer system by signing a $30,000 note and paying the balance. Net cash from (or used for) investing activities for the period was ________.
A) $(40,000)
B) $(10,000)
C) $40,000
D) $10,000
10) Team Shirts, Inc. had net cash from operating activities of $50,000. It paid $40,000 to buy a new computer system by signing a $30,000 note and paying the balance. Net cash from (or used for) financing activities for the period was ________.
A) $(30,000)
B) $10,000
C) $30,000
D) $0, however a note discloses the amount of the purchase financed by issuing a note payable