Chapter 11 Smartbook

Which of the following items are classified as cash inflows from operating activities on the statement of cash flows?

Collection on account Interest received on notes receivable

Cash transactions involving the purchase and sale of long-term assets and current investments are classified on the statement of cash flows as __________ activities.

Investing

Which of the following are cash inflows from financing activities?

Issuing stock to investors for cash Issuance of bonds

Which of the following are cash outflows from financing activities?

Pay dividends Repay borrowing from bank

Which of the following are classified as cash outflows from investing activities?

Purchase of an investment Purchase of land

Which of the following are classified as cash inflows from investing activities?

Sale of equipment Sale of land

Which of the following cash transactions are classified as cash inflows from investing activities?

Sale of investments Sale of equipment Sale of building

The statement of cash flows provides summary information about cash ________ and cash _______ during the year.

inflows outflows

______ activities include cash receipts and cash payments for transactions relating to revenue and expense activities.

operating

Cash receipts and cash payments for transactions relating to revenue and expense activities are classified on the statement of cash flows as

operating activities

Which of the following items are classified as cash outflows from operating activities on the statement of cash flows?

payment on account payment of salaries

Which of the following are common financing activities?

Purchasing treasury stock Issuing common stock Payment of cash dividends

Cash flows from _________ activities include both inflows and outflows of cash from the external funding of a business.

financing

Cash inflows and outflows involving stockholders and creditors are classified on the statement of cash flows as _________ activities.

financing

The three classifications on the statement of cash flows are cash flows from (Select all that apply.)

financing, investing, and operating activities

The financial statement that provides information about cash receipts and cash disbursements for the period is the

statement of cash flows

The purchase and sale of long-term assets and current investments are classified as

investing activities.

The statement of cash flows classifies items as

operating, investing, or financing

Kleister Company issues bonds for $100 million and repays a long-term notes payable of $10 million. The company also sells its own common shares for $12 million and pays cash dividends of $5 million. Which of the following are cash outflows from financing activities?

payment of cash dividends repayment of notes payable

Which of the following items are classified as cash outflows from operating activities on the statement of cash flows?

payment on account purchase of supplies Interest paid on bonds