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What kind of activities are the following?
Dividends paid
Proceeds from the issuance of common stock
Borrowings under a line of credit
Proceeds from the issuance of convertible bonds
Financing activities
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The payment of dividends is a cash outflow from a ------------------------------.
The payment of dividends is a cash outflow from a financing activity.
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The receipt of dividends, however, is generally considered a cash inflow from an ---------------------.
The receipt of dividends, however, is generally considered a cash inflow from an operating activity.
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Dividends paid to shareholders are shown on the statement of cash flows as
Cash flows from financing activities.
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A company acquired a building, paying a portion of the purchase price in cash and issuing a mortgage note payable to the seller for the remaining balance. In a statement of cash flows, what amount is included in investing activities for this transaction?
Cash payment.
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In a statement of cash flows, interest payments to lenders and other creditors should be classified as cash outflows for
Operating activities.
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Cash receipts from sales of goods and services, interest on loans, and dividends on equity securities are from -----------------------------.
Cash receipts from sales of goods and services, interest on loans, and dividends on equity securities are from operating activities.
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On July 1, Year 1, Dewey Co. signed a 20-year building lease that it reported as a finance lease. Dewey paid the monthly lease payments when due. How should Dewey report the effect of the lease payments in the financing activities section of its Year 1 statement of cash flows?
An outflow equal to the Year 1 principal payments only.
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