Q7. Which of the following would NOT be a component of cash flow from investing? A) Purchase of equipment. B) Dividends paid. C) Sale of land.
Q8. What are the main components of cash flow from operations? A) Capitalization activities, sale of assets, and purchasing securities. B) Repayment of bonds, issuance of common stock, and stock splits. C) Changes in accounts receivable, inventory, accounts payable, and items that flow through the income statement.
Q9. Which of the following should be classified as cash flows from investing (CFI) by Elegant, Inc., which reports under U.S. GAAP?
A) Interest received by Elegant, Inc. on a bond Elegant, Inc. purchased from an outside investor. B) Dividends received by Elegant, Inc. from an investment in another firm. C) Elegant's payment to purchase equipment to be used in its business.
Q10. Which of the following items is NOT found in the financing cash flow part of the statement of cash flows? A) Change in long-term debt. B) Dividends paid. C) Change in retained earnings.
Q11. Jodi Lein, small business consultant, is currently working with RJ Landscaping, a sole proprietorship. She is trying to educate the owner on the importance of monitoring cash flows. Operating information as of the end of the most recent month appears below: - Cash from sale of truck of $7,000.
- Cash salaries paid of $17,000.
- Cash from customers of $45,000.
- Depreciation expense of $5,500.
- Interest on bank line of credit of $1,000.
- Cash paid to suppliers of $22,000.
- Other cash expenses, including rent, of $6,300.
- No taxes due.
Using this information, what is the cash flow from operations for the month? A) $11,200. B) -$300. C) -$1,300.
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发表于 2009-1-17 10:57
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