True / False Questions
98. On the statement of cash flows, cash receipts from interest and dividends are classified as investing activities.
99. If a company sells equipment at a loss, the total amount of cash collected from selling the equipment is reported in the investing activities section of the statement of cash flows.
100. Investing activities on the statement of cash flows always involve claims to assets (liabilities and equity).
101. A cash payment to purchase treasury stock is reported on the statement of cash flows as a financing activity.
102. Companies report significant noncash investing and financing activities on a schedule that accompanies the statement of cash flows.
103. The three main sections of the statement of cash flows are, in order, operating activities, financing activities, and investing activities.
104. The final or bottom line on the statement of cash flows is the net increase or decrease in cash for the period.
105. The amount of revenue a company recognizes on the income statement normally differs from the amount of cash collected from customers.
106. Harvey Corporation's sales for 2011 were $300,000, and the balance in its accounts receivable increased by $8,000 during the year. In 2011, Haltom collected $308,000 in cash from its customers.
107. Merriman Corporation reported utilities expense of $28,200 on its income statement for 2011. For the year, the beginning balance in Utilities Payable was $2,000 and the ending balance was $1,000. The amount of cash that Merriman paid for utilities in 2011 was $29,200.