33. How would a company record the purchase of $30,000 of Treasury Stock on the Statement...

33. How would a company record the purchase of $30,000 of Treasury Stock on the Statement of Cash Flows?

As a cash outflow for investing activities

This transaction would not be reported on the Statement of Cash flows.

As a cash inflow for investing activities

As a cash inflow for financing activities

As a cash outflow for financing activities

34.

When preparing the Statement of Cash Flows under the direct method, how do we determine the payment from suppliers?

Purchases + Ending Inventory – Beginning Inventory + Beginning Accounts Payable – Ending Accounts Payable.

Purchases - Ending Inventory + Beginning Inventory - Beginning Accounts Payable + Ending Accounts Payable

Purchases - Ending Inventory + Beginning Inventory + Beginning Accounts Payable – Ending Accounts Payable.

None of these answers are correct.

35.

Which of the following would NOT be reported in the Operating Section of the Statement of Cash Flows when using the Indirect Method?

Dividends received

Interest paid on a note

Loss on sale of equipment

Dividends paid

Solutions

Expert Solution

Ans- 33- The correct option is -As a cash inflow for investing activities.

34-The correct option is-Purchases + Ending Inventory – Beginning Inventory + Beginning Accounts Payable – Ending Accounts Payable.

35-The correct option is-Dividends paid Dividends are a cash outflow in the financing-activities section of the statement of cash Flow.

ekkarill92 answered 1 year ago

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