Acct 1

Land costing $140,000 was sold for $173,000 cash. The gain on the sale was reported on the income statement as other income. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land?

$173,000

The statement of cash flows is not useful for

calculating the net worth of a company

​Which of the following would not be on the statement of cash flows?

cash flows from contingent activities

Which of the following can be found on the statement of cash flows?

cash flows from operating activities

Which of the following stock investments should be accounted for using the cost method?

investments of less than 20%

The cost method of accounting for stock

recognizes dividends as income

Cash paid for equipment would be reported on the statement of cash flows in

the cash flows from investing activities section

A business issues 20-year bonds payable in exchange for preferred stock. This transaction would be reported on the statement of cash flows in

a separate schedule

Preferred stock issued in exchange for land would be reported in the statement of cash flows in

a separate schedule

Which of the following should be added to net income in calculating net cash flow from operating activities using the indirect method?

depreciation expense