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1.Which of the following is not classified among the investing activities in a

By December 6, 2021No Comments

1.Which of the following is not classified among the investing activities in astatement of cash flows?A.Purchase of equity securities for cash.B.Collection of the principal amount of cash loans made to others.C.Investment of cash made in the business by the owners.D.Purchase of property,plant,and equipment for cash.2.Which of the following is a financing activity?A.Receipts of interest.B.Payment of dividends.C.Making sales on account.D.Paying off accounts payable.3.Which of the following is not classified among the financing activities in astatement of cash flows?A.Re-issue of treasury shares.B.Payment of dividends to shareholders.C.Purchase of property,plant and equipment for cash.D.Short-term borrowing.4.Which of the following would indicate a cash disbursement?A.Selling equipment at a loss.B.A decrease in accounts receivable.C.An increase in prepaid expenses.D.A decrease in inventory.5.Profit for the year differs from net cash from operations because of all thefollowing except:A.Depreciation expenses.B.Timing differences between recognizing revenue and expenses and their cash flows.C.Gains on disposal of Equipment.D.All of the above will cause a difference between profit for the year and cash flows.

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