Reference no: EM132965371

Problem 1: In which section of the statement of cash flow would a trade of long-term investments for new equipment appear?

Select one:

a. Operating activities section

b. Investing activities section

c. Not included in the statement of cash flow

d. Financing activities section

Problem 2: Cash flow statements can be prepared using the:

Select one:

a. Investing or financing method

b. Direct or indirect method

c. Gaap method

d. Column or row method

Problem 3: An increase in accounts payable from one year to the next:

Select one:

a. Decreases cash flow

b. Is always accompanied by an increase in long-term liabilities

c. Does not affect cash flow

d. Increases cash flow

Problem 4: When statements are prepared using the accrual basis, a sale on account:

Select one:

a. Decreases cash

b. Does not affect cash

c. Reduces profits

d. Increases cash