Question

When using the indirect method to determine operating cash flows, how is an increase in accounts receivable during the year shown on the Statement of Cash Flows?

a.operating activity

b.financing activity

c.noncash investing and financing activity

d.investing activity

e.not reported on the statement of cash flows

When using the indirect method to determine operating cash flows, how would the declaration and payment of cash dividends be shown on the Statement of Cash Flows?

a.noncash investing and financing activity

b.financing activities

c.operating activities

d.not reported on the statement of cash flows

e.investing activities

When using the indirect method to determine operating cash flows, how is the decrease in accounts payable shown on the Statement of Cash Flows?

a.investing activity

b.operating activity

c.not reported on the statement of cash flows

d.financing activity

e.noncash investing and financing activity

When using the direct method to determine operating cash flows, how is the purchase of equipment for cash shown on the Statement of Cash Flows?

a.not reported on the statement of cash flows

b.financing activity

c.operating activity

d.investing activity

e.noncash investing and financing activity

When using the direct method to determine operating cash flows, how is the payment of a cash dividend shown on the Statement of Cash Flows?

a.investing activity

b.noncash investing and financing activity

c.financing activity

d.not reported on the statement of cash flows

e.operating activity

When using the direct method to determine operating cash flows, how is the collection of cash from customers shown on the Statement of Cash Flows?

a.investing activity

b.financing activity

c.noncash investing and financing activity

d.operating activity

e.not reported on the statement of cash flows

When using the direct method to determine operating cash flows, how is the issuance of stock for cash shown on the Statement of Cash Flows?

a.investing activity

b.operating activity

c.not reported on the statement of cash flows

d.noncash investing and financing activity

e.financing activity

When using the direct method to determine operating cash flows, how are salaries paid to employees reported on the Statement of Cash Flows?

a.operating activity

b.financing activity

c.investing activity

d.noncash investing and financing activity

e.not reported on the statement of cash flows

When using the direct method to determine operating cash flows, how is the purchase of equipment for cash shown on the Statement of Cash Flows?

a.operating activity

b.financing activity

c.noncash investing and financing activity

d.not reported on the statement of cash flows

e.investing activity

Answer 1

Answer- 1)-An increase in accounts receivable during the year shown on the Statement of Cash Flows = Operating activity.

2)- The declaration and payment of cash dividends be shown on the Statement of Cash Flows = Financing activity.

3)- The decrease in accounts payable shown on the Statement of Cash Flows = Operating activity.

4)- The purchase of equipment for cash shown on the Statement of Cash Flows is = Investing activity.

5)- The payment of a cash dividend shown on the Statement of Cash Flows, using direct method = Financing activity.

6)- The collection of cash from customers shown on the Statement of Cash Flows using direct method = Operating activity.

7)- The issuance of stock for cash shown on the Statement of Cash Flows using direct method = Financing activity.

8)- Salaries paid to employees reported on the Statement of Cash Flows using direct method = Operating activity.

9)- The purchase of equipment for cash shown on the Statement of Cash Flows using direct method = Investing activity.