An inflow of cash from investing activities would be A. the issuance of stock. B
ID: 2491008 • Letter: A
Question
An inflow of cash from investing activities would be A. the issuance of stock. B. the sale of investment in equity securities. C. interest received on loans. D. the purchase of fixed assets
.When a bond issued at face value is retired, what is the journal entry?
A. Debit Bond Interest Expense; credit Cash
B. Debit Bonds Payable; credit Cash
C. Debit Cash; credit Bonds Payable
D. Debit Cash; credit Bond Interest Expense
3/ A $1,000 bond quoted at 104 would sell for
A. $1,104.
B. $1,000.
C. $104.
D. $1,040.
4/ When preparing the statement of cash flows by the indirect method, if current liabilities increase the difference is
A. added to net income.
B. added to investments.
C. deducted from net income.
D. subtracted from investments.
A cash outflow from a financing activity would be
A. paying cash dividends.
B. buying debt and equity securities.
C. paying interest on notes payable.
D. making payments for additional inventory.
When preparing the statement of cash flows by the indirect method, if accumulated depreciation increases the difference is
A. added to net income.
B. added to investments.
C. deducted from net income.
D. not considered in the statement of cash flows using the indirect method.
A. Debit Bond Interest Expense; credit Cash
B. Debit Bonds Payable; credit Cash
C. Debit Cash; credit Bonds Payable
D. Debit Cash; credit Bond Interest Expense
3/ A $1,000 bond quoted at 104 would sell for
A. $1,104.
B. $1,000.
C. $104.
D. $1,040.
4/ When preparing the statement of cash flows by the indirect method, if current liabilities increase the difference is
A. added to net income.
B. added to investments.
C. deducted from net income.
D. subtracted from investments.
A cash outflow from a financing activity would be
A. paying cash dividends.
B. buying debt and equity securities.
C. paying interest on notes payable.
D. making payments for additional inventory.
When preparing the statement of cash flows by the indirect method, if accumulated depreciation increases the difference is
A. added to net income.
B. added to investments.
C. deducted from net income.
D. not considered in the statement of cash flows using the indirect method.
Explanation / Answer
Ans1 B is the correct answer Debit Bond Payable, Credit Cash Ans3 C is the correct Answer Will sell @ $104 Ans4 A is the correct Answer Added to Net Income Ans5 A Is correct Paying Cash Dividend Ans6 A is correct Added to Net Income