Practice Exam2Intermediate Accounting_1

Practice Exam2Intermediate Accounting_1 - Intermediate...

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Intermediate Accounting I Practice Exam 2 Chapters 5 (Please study the homework problems for chapter 4 ) 1. In a statement of cash flows, payments to acquire debt instruments of other entities would typically be classified as cash outflows for a. financing activities. b. investing activities. c. operating activities. d. equity activities. 2. In a statement of cash flows, proceeds from issuing equity instruments should be classified as cash inflows from a. brokerage activities. b. financing activities. c. investing activities. d. operating activities. 3. A loss on the sale of machinery in the ordinary course of business should be presented in a statement of cash flows (indirect method) as a. a deduction from net income. b. an addition to net income.
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c. an inflow and outflow of cash. d. an outflow of cash. 4. In preparing a statement of cash flows (indirect method), cash flows from operating activities a. is calculated as the difference between revenues and expenses plus the beginning cash balance. b.
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Practice Exam2Intermediate Accounting_1 - Intermediate...

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