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6332 pract exam 3 part 3 spring 2011 - Chapter 21 Statement...

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Chapter 21 - Statement of Cash Flows Revisited Chapter 21 Statement of Cash Flows Revisited Multiple Choice Questions 21. Which of the following never requires an outflow of cash? A. Early extinguishment of debt. B. Retirement of common stock. C. Payment of dividends. D. Amortization of patent. AACSB: Reflective thinking Bloom's: Comprehension Learning Objective: 21-01 Explain the usefulness of the statement of cash flows. Level of Learning: Easy 23. All of the following may qualify as cash equivalents except: AACSB: Reflective thinking Bloom's: Knowledge Learning Objective: 21-01 Explain the usefulness of the statement of cash flows. Level of Learning: Easy 25. How is the amortization of patents reported in a statement of cash flows that is prepared using the direct method? AACSB: Analytic Bloom's: Analysis Learning Objective: 21-01 Explain the usefulness of the statement of cash flows. Level of Learning: Medium 21-1
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Chapter 21 - Statement of Cash Flows Revisited 26 . When a transfer is made between cash and cash equivalents with no gain or loss, how is the transaction treated in the statement of cash flows? AACSB: Analytic Bloom's: Analysis Learning Objective: 21-01 Explain the usefulness of the statement of cash flows. Level of Learning: Medium 28. A firm reported ($ in millions) net cash inflows (outflows) as follows: operating $75, investing ($200), and financing $350. The beginning cash balance was $250. What was the ending cash balance? A. $875. B. $25. C. $475. D. $125. $75 - $200 + $350 + $250 = $475 AACSB: Analytic Bloom's: Application Learning Objective: 21-01 Explain the usefulness of the statement of cash flows. Level of Learning: Medium 29. Cash equivalents generally would not include short-term investments in: AACSB: Reflective thinking Bloom's: Comprehension Learning Objective: 21-02 Define cash equivalents. Level of Learning: Easy 21-2
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Chapter 21 - Statement of Cash Flows Revisited
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