Question Details

Land acquired from the issuance of ordinary shares 



1.	On the statement of cash flows using the indirect method, patent amortization expense will
a.	be added to net income in the operating section.
b.	be deducted from net income in the operating section.
c.	appear as an inflow of cash in the investing section.
d.	appear as an outflow of cash in the investing section.

2.	The indirect and direct methods of preparing the statement of cash flows are identical except for the
a.	significant non-cash activity section.
b.	operating activities section.
c.	investing activities section.
d.	financing activities section.

	3.	Land acquired from the issuance of ordinary shares is reported
a.	as a financing activity.
b.	as an investing activity.
c.	as an operating activity.
d.	in a separate note or supplementary schedule to the financial statements.

	4.	In Rooney Company, Treasury Shares increased $30,000 from a cash purchase, and Retained Earnings increased $80,000 as a result of net income of $124,000 and cash dividends paid of $44,000. Net cash used by financing activities is:
a.	$30,000.
b.	$44,000.
c.	$110,000.
d.	$74,000.

	5.	In Wallace Company, net income is $260,000. If accounts receivable increased $140,000 and accounts payable decreased $40,000, net cash provided by operating activities using the indirect method is:
a.	$80,000.
b.	$160,000.
c.	$360,000.
d.	$440,000.




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