University of Phoenix, ACC291 /ACC291 Week 5 Quiz. Questions And Answers

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Acc 291 Week 5 Quiz Practice Question 10 Which of the following is an operating activity? Sale of equipment Payment of a cash dividend Making a loan to another entity Payment ... of interest Correct! Investing activities include acquiring and disposing of investments and property, plant, and equipment, and lending money and collecting loans. Which is an example of a cash flow from an investing activity? Payment of cash to suppliers for inventory Receipt of cash from the issuance of bonds payable Payment of cash to repurchase outstanding capital stock Receipt of cash from the sale of equipment Correct! Cash is not involved in this transaction; therefore, it is not reported as an operating, an investing, or a financing activity. It is a noncash transaction. Hanover, Inc. purchased land through the issuance of long-term bonds. How is this reported on the statement of cash flows? Significant noncash investing and financing activity that merits disclosure Operating activity Financing outflow Investing inflow Practice Question 25 Correct! Since depreciation is a noncash expense, it is added to net income in the operating activities section. Under the indirect method of preparing the statement of cash flows, which of the following is added to net income in the operating activities section? [Show More]

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