Statement of cash flows

Activities that involve the cash effects of making and collecting loans and acquiring and disposing of property, plant, and equipment are classified as:

• noncash activities.

• investing activities.

• operating activities.

• financing activities.

Which of the following statements shows the amount of cash used to pay dividends or purchase treasury stock?

• statement of financial position.

• income statement.

• statement of stockholders’ equity.

• choices 1 & 3

The operating section is the first section of the statement of cash flows.

• True

• False

Payment of dividends would come under which activity on the statement of cash flows?

• Financing

• Operating

• Investing

• None of these answer choices are correct

Borrowing money from creditors is considered an investing activity on the statement of cash flows.

• True

• False

Receipt of interest from a Note Receivable would be reported as a cash inflow in which of the following sections:

• investing activities

• financing activities

• operating activities

• stock activities