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