Accounting 201 chapter 11

In 2019, Forever Young, Inc. sold land for $130,000 cash, purchased equipment for $19,000 cash and issued bonds for $100,000 cash. The Net cash provided by investing activities is: a. $111,000. b. $149,000. c. $211,000. d. $230,000.

a

Using the indirect method of preparing the statement of cash flows, which of the following would be added to net income? a. depreciation expense b. an increase in accounts receivable c. a decrease in accounts payable d. gain on the sale of property

a

In computing net cash provided by operating activities using the indirect method, each of the following is added to net income EXCEPT: a. an increase in accrued expenses payable. b. a gain on sale of equipment. c. depreciation expense. d. a decrease in inventory.

b

Increases and decreases in the long-term assets are reported on the statement of cash flows as: a. operating activities. b. investing activities. c. financing activities. d. noncash activities.

b

On the statement of cash flows, in which section would the purchase of land with cash appear? a. operating activities b. investing activities c. financing activities d. noncash investing and financing activities

b

Which of the three types of activities reported on the statement of cash flows is the MOST critical for a company's long-term survival? a. investing activities b. operating activities c. financing activities d. noncash investing and financing activities

b

The three types of activities reported on the statement of cash flows are: a. operating, investments, and financing. b. operating, investing, and free flow. c. operating, investing, and financing. d. operating, indirect, and direct.

c

Financing activities on a statement of cash flows relate to: a. current liabilities and long-term liabilities. b. current assets and long-term assets. c.long-term assets. d. long-term liabilities and stockholders' equity.

d

The statement of cash flows provides information about: a. a company's ability to pay interest and dividends. b. a company's future cash flows. c. decisions made by a company's management. d. all of the above.

d