Question

These are review questions for my final assistance would be appreciated.

Which of these transactions would not be part of the cash flows from the operating activities section of the statement of cash flows?

1. credit purchase of inventory
2. sales of product, for cash
3. cash paid for purchase of equipment
4. salary payments to employees

Which of these transactions would be part of the financing section?

1. inventory purchased for cash
2. sales of product, for cash
3. cash paid for purchase of equipment
4. dividend payments to shareholders, paid in cash

Which of these transactions would be part of the investing section?

1. land purchased, with note payable
2. sales of product, for cash
3. cash paid for purchase of equipment
4. dividend payments to shareholders, paid in cash

What is the effect on cash when current liabilities increase?

1. Cash increases by the same amount.
2. Cash decreases by the same amount.
3. Cash decreases by twice as much.
4. Cash does not change.

What is the effect on cash when current liabilities decrease?

1. Cash increases by the same amount.
2. Cash decreases by the same amount.
3. Cash decreases by twice as much.
4. Cash does not change.

Which of the following represents a source of cash in the investing section?

1. sale of investments
2. depreciation expense
3. decrease in accounts receivable
4. decrease in bonds payable

If beginning cash equaled $10,000 and ending cash equals $19,000, which is true?

1. Operating cash flow 9,000; Investing cash flow (3,500); Financing cash flow (2,500)
2. Operating cash flow 4,500; Investing cash flow 9,000; Financing cash flow (4,500)
3. Operating cash flow 2,000; Investing cash flow (13,000); Financing cash flow 2,000
4. none of the above

Answer 1

Answer- These transactions would not be part of the cash flows from the operating activities section of the statement of cash flows= cash paid for purchase of equipment (Option C).

Answer- These transactions would be part of the financing section = dividend payments to shareholders, paid in cash (Option D).

Answer- These transactions would be part of the investing section = cash paid for purchase of equipment (Option C).

Answer- The effect on cash when current liabilities increase is = Cash increases by the same amount (Option A).

Answer- The effect on cash when current liabilities decrease is = Cash decreases by the same amount (Option B).

Answer- The following represents a source of cash in the investing section = sale of investments (Option A).

Answer- If beginning cash equaled $10000 and ending cash equals $19000, the following is true = Operating cash flow 4500; Investing cash flow 9000; Financing cash flow (4500) (Option B).