Wednesday, November 13, 2019

On the Statement of Cash Flows, which of the following are considered financing activities?

On the Statement of Cash Flows, which of the following are considered financing activities?

I. increase in long-term debt
II. decrease in accounts payable
III. interest paid
IV. dividends paid 
 
A. 
I and IV only

B. 
III and IV only

C. 
II and III only

D. 
I, III, and IV only

E. 
I, II, III, and IV

 
13.
On the Statement of Cash Flows, which of the following are considered operating activities?

I. costs of goods sold
II. decrease in accounts payable
III. interest paid
IV. dividends paid 
 
A. 
I and III only

B. 
III and IV only

C. 
I, II, and III only

D. 
I, III, and IV only

E. 
I, II, III, and IV

 
14.
According to the Statement of Cash Flows, a decrease in accounts receivable will _____ the cash flow from _____ activities. 
 
A. 
decrease; operating

B. 
decrease; financing

C. 
increase; operating

D. 
increase; financing

E. 
increase; investment

 
15.
According to the Statement of Cash Flows, an increase in interest expense will _____ the cash flow from _____ activities. 
 
A. 
decrease; operating

B. 
decrease; financing

C. 
increase; operating

D. 
increase; financing

E. 
increase; investment

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