Reference no: EM132611990
Problem 1: Cash paid for equipment would be reported on the statement of cash flows in:
a. the Cash flows from operating activities section.
b. a separate schedule.
c. the Cash flows from investing activities section.
d. the Cash flows from financing activities section.
Problem 2: The order of presentation of activities on the statement of cash flows is:
Group of answer choices
a. operating, financing, and investing.
b. operating, investing, and financing.
c. financing, operating, and investing.
d. financing, investing, and operating.
Problem 3: On the statement of cash flows prepared by the indirect method, a $50,000 gain on the sale of investments would be:
a. deducted from dividends declared in converting the dividends declared to the cash flows from financing activities related to dividends.
b. deducted from net income in converting the net income reported on the income statement to cash flows from operating activities.
c. added to dividends declared in converting the dividends declared to the cash flows from financing activities related to dividends.
d. added to net income in converting the net income reported on the income statement to cash flows from operating activities