1.) The statement of cash flows summarizes only cash transactions.

True

False

2.) Which of the following is an example of a financing activity?

a. Paying for inventory

b. Purchasing a fixed asset

c. Collections from customers

d. Borrowing money

3.) Which of the following is not reported on the statement of cash flows?

a. cash from operations

b. cash from investing activities

c. non-cash transactions in general

d. Dividends

4.) The statement of cash flows represents cash activities.

True

False

5.) Depreciation is a cash transaction reported under operating activities on the statement of cash flows.

True

False

6.) Which of the following is an operating activity?

a. Issuing stock

b. Purchase of a fixed asset such as equipment.

c. Payment of dividends to investors.

d. Collection of receivables from customers.

7.) The cash purchase of inventory for sale to customers is an operating activity.

True

False

8.) The cash purchase of a building is an operating activity.

True

False

9.) The purpose of the statement of cash flows is to summarize the results of operations and provide information about revenues and expenses.

True

False

10.) Stock transactions, including treasury stock, are reporting under the financing activities on the statement of cash flows.

True

False

Answer rating: 100% (QA)

solution 1 The statement of cash flows summarizes only cash transactions Ans False A cash flow statement is a financial statement that summarizes the cash and cash equivalents entering and leaving a c... View the full answer