Question Details

If a company has both an inflow and outflow of cash 



1.	If a company has both an inflow and outflow of cash related to property, plant, and equipment, the
a.	two cash effects can be netted and presented as one item in the investing activities section.
b.	cash inflow and cash outflow should be reported separately in the investing activities section.
c.	two cash effects can be netted and presented as one item in the financing activities section.
d.	cash inflow and cash outflow should be reported separately in the financing activities section.

2.	Of the items below, the one that appears first on the statement of cash flows is
a.	noncash investing and financing activities.
b.	net increase (decrease) in cash.
c.	cash at the end of the period.
d.	cash at the beginning of the period.

3.	Which of the following transactions does not affect cash during a period?
a.	Write-off of an uncollectible account
b.	Collection of an accounts receivable
c.	Sale of treasury stock
d.	Exercise of the call option on bonds payable

	4.	Significant noncash transactions would not include
a.	conversion of bonds into common stock.
b.	asset acquisition through bond issuance.
c.	treasury stock acquisition.
d.	exchange of plant assets.

	5.	In preparing a statement of cash flows, a conversion of bonds into common stock will be reported in
a.	the financing section.
b.	the "extraordinary" section.
c.	a separate schedule or note to the financial statements.
d.	the stockholders' equity section.





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