FAR — Financial Accounting & Reporting — Quiz 73

Questions in this quiz (10)

1. Which of the following is considered a noncash financing activity?

   • Issuing stock to acquire land
   • Collecting cash from customers
   • Paying rent
   • Selling inventory for cash

2. Where are significant noncash investing and financing activities reported?

   • Income statement
   • Balance sheet
   • Notes to financial statements
   • Statement of retained earnings

3. Which financial statement shows financial position at a point in time?

   • Income statement
   • Statement of retained earnings
   • Balance sheet
   • Statement of cash flows

4. What represents the net change in cash during a period?

   • Net income
   • Operating cash flow
   • Total of operating, investing, and financing cash flows
   • Retained earnings

5. Which of the following decreases operating cash flow?

   • Increase in accounts receivable
   • Increase in accounts payable
   • Increase in accrued liabilities
   • Increase in unearned revenue

6. Which of the following increases operating cash flow?

   • Increase in inventory
   • Increase in prepaid expenses
   • Increase in accounts payable
   • Increase in accounts receivable

7. Which adjustment is required under the indirect method?

   • Subtract depreciation
   • Add depreciation
   • Subtract liabilities
   • Add revenue

8. Which section typically provides the largest cash source?

   • Operating activities
   • Investing activities
   • Financing activities
   • Noncash activities

9. Which of the following is an investing cash inflow?

   • Issuing stock
   • Collecting receivables
   • Selling equipment
   • Paying wages

10. Which of the following is a financing cash outflow?

    • Paying dividends
    • Paying utilities
    • Paying salaries
    • Purchasing inventory