Intermediate Accounting 3 ( Statement of Cash Flows ) – Choose the…

Question Answered step-by-step Intermediate Accounting 3 ( Statement of Cash Flows ) – Choose the… Intermediate Accounting 3 (Statement of Cash Flows) – Choose the CORRECT Answer and EXPLAIN.Question 23When preparing a statement of cash flows using the direct method, amortization of patent is?a. Shown as an increase in cash flows from operating activities.b. Shown as a reduction in cash flows from operating activities.c. Included in supplemental disclosures of noncash transactions.d. Not reported in the statement of cash flows or related disclosures.Question 24In a statement of cash flows, proceeds from issuing equity instruments should be classified as cash inflows from?a. Financing activities.b. Operating activities.c. Lending activities.d. Investing activities.Question 26In a statement of cash flows, if used equipment is sold at a gain, the amount shown as a cash flow from investing activities equals the carrying amount of the equipment:a. Plus the gain and less the amount of tax attribute to the gain.b. Plus both the gain and the amount of tax attributable to the gain.c. Plus the gain.d. With no addition or subtraction.Question 27Operating activities include all of the following, except:a. Cash receipts from royalties, fees, commissions and other revenue.b. Cash receipts from sales of property, plant and equipment, intangible assets and other long-term assets.c. Cash payments to and in behalf of employees.d. Cash receipts and cash payments of an insurance entity for premiums and claims, annuities and other policy benefits.Question 28Which of the following events will appear in the cash flows from financing activities section of the statement of cash flows?a. Cash purchases of equipment.b. Cash purchases of bonds issued by another company.c. Cash purchase of treasury shares.d. Cash received as repayment for funds loaned. Accounting Business Financial Accounting ACCT 2301 Share QuestionEmailCopy link Comments (0)