Test bank with answers for financial accounting 6e by libby chapter 13

To Todownload downloadmore moreslides, slides,ebook, ebook,solutions solutionsand andtest testbank, bank,visit visithttp://downloadslide.blogspot.com http://downloadslide.blogspot.com Chapter 013: Statement of Cash Flows True / False Questions The only difference in presenting a statement of cash flows using the direct method rather than the indirect method is the details given for investing activities FALSE AACSB Tag: Relative Thinking Difficulty: Medium L.O.: Only investments with original maturities of less than three months qualify as cash equivalents TRUE AACSB Tag: Relative Thinking Difficulty: Medium L.O.: The payment of interest on a note payable is a cash flow from an operating activity TRUE AACSB Tag: Relative Thinking Difficulty: Medium L.O.: Collection of principal on a note receivable is a cash flow from investing activities TRUE AACSB Tag: Relative Thinking Difficulty: Medium L.O.: 13-1 ©2009 McGraw-Hill Inc Test Bank to accompany Libby Financial Accounting 6/e To Todownload downloadmore moreslides, slides,ebook, ebook,solutions solutionsand andtest testbank, bank,visit visithttp://downloadslide.blogspot.com http://downloadslide.blogspot.com Chapter 013: Statement of Cash Flows Very few companies use the direct method for disclosing their cash flows from operating activities TRUE AACSB Tag: Communications Difficulty: Easy L.O.: When accrued liabilities increase from the beginning to the end of the year, it means cash was not expended for some of the company's operating expenses so the increase would be added to net income to convert to cash flow from operating activities under the indirect method TRUE AACSB Tag: Analytic Difficulty: Medium L.O.: Under the indirect method, an increase in accounts receivable during the year will be deducted from net income to convert to cash flow from operating activities TRUE AACSB Tag: Relative Thinking Difficulty: Easy L.O.: If sales revenue was $1,800,000 and accounts receivable decreased $40,000 while unearned revenue increased $10,000 during the year, then cash collected from customers equals $1,840,000 FALSE AACSB Tag: Analytic Difficulty: Hard L.O.: 13-2 ©2009 McGraw-Hill Inc Test Bank to accompany Libby Financial Accounting 6/e To Todownload downloadmore moreslides, slides,ebook, ebook,solutions solutionsand andtest testbank, bank,visit visithttp://downloadslide.blogspot.com http://downloadslide.blogspot.com Chapter 013: Statement of Cash Flows A growing difference between net income and cash flow from operations can be a sign of management manipulation of earnings TRUE AACSB Tag: Relative Thinking Difficulty: Hard L.O.: 10 The quality of income ratio can only be interpreted based on knowledge of a company's business operations and strategies TRUE AACSB Tag: Relative Thinking Difficulty: Medium L.O.: 11 When a company purchases equipment, the cash outflows would be classified as financing activity FALSE AACSB Tag: Relative Thinking Difficulty: Easy L.O.: 12 Only long-term investments in other companies' stocks and bonds would be disclosed in the investing activities section, while short-term investments would be in the operating activities section FALSE AACSB Tag: Relative Thinking Difficulty: Medium L.O.: 13-3 ©2009 McGraw-Hill Inc Test Bank to accompany Libby Financial Accounting 6/e To Todownload downloadmore moreslides, slides,ebook, ebook,solutions solutionsand andtest testbank, bank,visit visithttp://downloadslide.blogspot.com http://downloadslide.blogspot.com Chapter 013: Statement of Cash Flows 13 From 2009 to 2010, Canadian Beer had a capital acquisitions ratio of 7.49 which means its net income exceeded its cash investment in property, plant and equipment by almost 7.5 times FALSE AACSB Tag: Relative Thinking Difficulty: Medium L.O.: 14 A low capital acquisitions ratio could indicate a higher need to obtain outside financing to expand property, plant, and equipment assets TRUE AACSB Tag: Relative Thinking Difficulty: Easy L.O.: 15 Free cash flow measures the sufficiency of cash flow from operating activities to cover both capital expenditures for property, plant and equipment as well as the payment of dividends FALSE AACSB Tag: Relative Thinking Difficulty: Easy L.O.: 16 When a company both borrows $150 million during the year and repays $120 million of notes, the company can disclose the $30 million net cash inflow in of borrowings net of repayments in the financing activities section of the statement of cash flows FALSE AACSB Tag: Relative Thinking Difficulty: Medium L.O.: 13-4 ©2009 McGraw-Hill Inc Test Bank to accompany Libby Financial Accounting 6/e To Todownload downloadmore moreslides, slides,ebook, ebook,solutions solutionsand andtest testbank, bank,visit visithttp://downloadslide.blogspot.com http://downloadslide.blogspot.com Chapter 013: Statement of Cash Flows 17 When a cash dividend is declared, it would affect the balance sheet but not the statement of cash flows TRUE AACSB Tag: Relative Thinking Difficulty: Easy L.O.: 18 Wish Corporation acquired a computer for $15,000 and paid for it in full by issuing 1,000 shares of its own common stock, par $10 (current market price $15 share) This transaction should not be reported on the statement of cash flows because cash was neither paid out nor received FALSE AACSB Tag: Relative Thinking Difficulty: Medium L.O.: 19 A transaction that does not cause an inflow or outflow of cash should be reported on the statement of cash flows only if it is an adjustment to convert net income on an accrual basis to cash basis FALSE AACSB Tag: Relative Thinking Difficulty: Medium L.O.: 20 When using the indirect method, a loss on the sale of equipment should be added to net income to derive cash flows from operating activities TRUE AACSB Tag: Relative Thinking Difficulty: Medium L.O.: Sup A 13-5 ©2009 McGraw-Hill Inc Test Bank to accompany Libby Financial Accounting 6/e To Todownload downloadmore moreslides, slides,ebook, ebook,solutions solutionsand andtest testbank, bank,visit visithttp://downloadslide.blogspot.com http://downloadslide.blogspot.com Chapter 013: Statement of Cash Flows Multiple Choice Questions 21 The statement of cash flows reports directly on the A financial position of the business B accrual basis in accordance with GAAP C causes of the inflows and outflows of cash D financial operating performance of the business AACSB Tag: Communications Difficulty: Easy L.O.: 22 Which of the following transactions would not create a cash flow? A The company purchased some of its own stock from a stockholder B Amortization of patent for the period C Payment of a cash dividend D Sale of equipment at book value (i.e no gain or loss) AACSB Tag: Relative Thinking Difficulty: Medium L.O.: 23 Which of the following transactions is not a direct use of cash? A Acquisition of inventory for cash B Exchanges of bonds payable for land C Purchase of treasury stock with cash D Cash dividend paid AACSB Tag: Relative Thinking Difficulty: Medium L.O.: 13-6 ©2009 McGraw-Hill Inc Test Bank to accompany Libby Financial Accounting 6/e To Todownload downloadmore moreslides, slides,ebook, ebook,solutions solutionsand andtest testbank, bank,visit visithttp://downloadslide.blogspot.com http://downloadslide.blogspot.com Chapter 013: Statement of Cash Flows 24 The statement of cash flows should be dated as follows: A December 31, 2010 B For the Year Ended December 31, 2010 C At Year-End December 31, 2010 D At December 31, 2010 AACSB Tag: Relative Thinking Difficulty: Easy L.O.: 25 Which of the following transactions is not a typical use of cash? A Payment of short-term debt with cash B Purchase of treasury stock for cash C Acquisition of a building for cash D Sale of equipment for less than book value AACSB Tag: Relative Thinking Difficulty: Easy L.O.: 26 Which of the following would not be a cash flow from investing activities? A Purchase of long-term investments B Sale of a patent C Collection of principal of a note receivable D Collection of interest revenue on a long-term note receivable AACSB Tag: Relative Thinking Difficulty: Medium L.O.: 27 Which of the following would not be a cash flow from financing activities? A Issuance of common stock B Borrowing on a long-term note payable C Collection of a cash dividend D Repayment of principal on a long-term note payable AACSB Tag: Relative Thinking Difficulty: Medium L.O.: 13-7 ©2009 McGraw-Hill Inc Test Bank to accompany Libby Financial Accounting 6/e To Todownload downloadmore moreslides, slides,ebook, ebook,solutions solutionsand andtest testbank, bank,visit visithttp://downloadslide.blogspot.com http://downloadslide.blogspot.com Chapter 013: Statement of Cash Flows 28 Which of the following is a cash flow from operating activities? A Purchase of merchandise for resale B Sale of a piece of land no longer used in operations C Sale of long-term investments in common stock D Payment of a note payable AACSB Tag: Relative Thinking Difficulty: Medium L.O.: 29 Which of the following would least likely be a cash equivalent? A A $10,000, 30 day certificate of deposit B 500 shares of IBM stock C A three-month Treasury bill D A ten-year Treasury note purchased two months before maturity AACSB Tag: Relative Thinking Difficulty: Medium L.O.: 30 A cash inflow from financing activities includes A proceeds from selling investments in equity securities of another company B proceeds from selling equipment C proceeds from issuance of bonds payable D receipt of interest payments AACSB Tag: Relative Thinking Difficulty: Easy L.O.: 13-8 ©2009 McGraw-Hill Inc Test Bank to accompany Libby Financial Accounting 6/e To Todownload downloadmore moreslides, slides,ebook, ebook,solutions solutionsand andtest testbank, bank,visit visithttp://downloadslide.blogspot.com http://downloadslide.blogspot.com Chapter 013: Statement of Cash Flows 31 For an investment to qualify as a cash equivalent, it must be readily convertible to a known amount of cash and A it must be identified as a cash equivalent on the income statement B must be sufficiently close to its maturity date so that its market value is relatively insensitive to interest rate changes C the investment must have a known foreign exchange rate D it must mature within months AACSB Tag: Relative Thinking Difficulty: Medium L.O.: 32 A cash inflow from operating activities includes A collection of the principal of a loan B receipt of interest on an investment C proceeds from issuance of notes payable D collection of sales of equipment used in operations of the business AACSB Tag: Relative Thinking Difficulty: Easy L.O.: 33 Which of the following statements about the statement of cash flows is correct? A A company with a net loss on the income statement will always have a net cash outflow from operating activities B A purchase of equipment is classified as a cash inflow from investing activities C Cash dividends received on stock investments are classified as cash flows from operating activities D Cash dividends paid are classified as cash flows from operating activities AACSB Tag: Relative Thinking Difficulty: Medium L.O.: 13-9 ©2009 McGraw-Hill Inc Test Bank to accompany Libby Financial Accounting 6/e To Todownload downloadmore moreslides, slides,ebook, ebook,solutions solutionsand andtest testbank, bank,visit visithttp://downloadslide.blogspot.com http://downloadslide.blogspot.com Chapter 013: Statement of Cash Flows 34 Which of the following items about the statement of cash flows is correct? A Non-cash expenses such as depreciation are deducted from net income with the indirect method in computing cash flows from operating activities B Cash equivalents are highly liquid investments with maturities at the date of purchase of less than three months C The acquisition of land by issuing bonds payable would not appear on the statement of cash flows D Cash paid for interest on debt would be classified as a financing cash flow AACSB Tag: Relative Thinking Difficulty: Medium L.O.: 35 Kela Corporation reported 2009 net income of $450,000 including the effects of depreciation expense, $60,000 and amortization expense on a patent, $10,000 Also, cash of $50,000 was borrowed on a 5-year note payable Based on this data, total cash inflow from operating activities for 2009 was A $440,000 B $470,000 C $520,000 D $570,000 AACSB Tag: Analytic Difficulty: Medium L.O.: 36 Allen Company's 2009 income statement reported total revenues, $850,000 and total expenses (including $40,000 depreciation) of $720,000 The 2009 balance sheet reported the following: accounts receivable—beginning balance, $50,000 and ending balance, $40,000; accounts payable—beginning balance, $22,000 and ending balance, $28,000 Therefore, based only on this information, the 2009 net cash inflow from operating activities was A $126,000 B $166,000 C $174,000 D $186,000 AACSB Tag: Analytic Difficulty: Hard L.O.: 13-10 ©2009 McGraw-Hill Inc Test Bank to accompany Libby Financial Accounting 6/e To Todownload downloadmore moreslides, slides,ebook, ebook,solutions solutionsand andtest testbank, bank,visit visithttp://downloadslide.blogspot.com http://downloadslide.blogspot.com Chapter 013: Statement of Cash Flows 87 Brooks Company reported net income of $40,000 which included depreciation expense and depletion expense of $21,000 and $18,000, respectively The following changes also occurred during 2009: Calculate cash flows from operating activities $40,000 + $21,000 + $18,000 + $10,000 + $5,000 + $7,000 $10,000 = $91,000 AACSB Tag: Analytic Difficulty: Medium L.O.: 13-36 ©2009 McGraw-Hill Inc Test Bank to accompany Libby Financial Accounting 6/e To Todownload downloadmore moreslides, slides,ebook, ebook,solutions solutionsand andtest testbank, bank,visit visithttp://downloadslide.blogspot.com http://downloadslide.blogspot.com Chapter 013: Statement of Cash Flows 88 Sagaworth Inc reported the following information: Compute Sagaworth's net cash flow from operating activities for 2009 under the indirect method $160,000 net cash outflow ( $380,000 + $150,000 + $25,000 + $30,000 + $20,000 – $10,000 + $10,000 + $5,000 – $10,000) AACSB Tag: Analytic Difficulty: Hard L.O.: 13-37 ©2009 McGraw-Hill Inc Test Bank to accompany Libby Financial Accounting 6/e To Todownload downloadmore moreslides, slides,ebook, ebook,solutions solutionsand andtest testbank, bank,visit visithttp://downloadslide.blogspot.com http://downloadslide.blogspot.com Chapter 013: Statement of Cash Flows 89 Below is the 2009 income statement for the Critters Corporation Additional Information: Accounts receivable increased by $8,000 Merchandise inventory increased by $4,000 Accounts payable increased by $6,000 Prepaid expenses decreased by $2,000 Accrued liabilities decreased by $5,000 Interest payable increased by $1,000 Prepare the operating activities section of the statement of cash flows using the indirect method AACSB Tag: Analytic Difficulty: Medium L.O.: 13-38 ©2009 McGraw-Hill Inc Test Bank to accompany Libby Financial Accounting 6/e To Todownload downloadmore moreslides, slides,ebook, ebook,solutions solutionsand andtest testbank, bank,visit visithttp://downloadslide.blogspot.com http://downloadslide.blogspot.com Chapter 013: Statement of Cash Flows 90 Brice Corporation reported the following information: Compute Brice Corporation's cash collected from customers for the year ended December 31, 2009 $7,900,000 ($8,200,000 – $200,000 increase in accounts receivable – $100,000 decrease in unearned revenue) AACSB Tag: Analytic Difficulty: Hard L.O.: 2b 13-39 ©2009 McGraw-Hill Inc Test Bank to accompany Libby Financial Accounting 6/e To Todownload downloadmore moreslides, slides,ebook, ebook,solutions solutionsand andtest testbank, bank,visit visithttp://downloadslide.blogspot.com http://downloadslide.blogspot.com Chapter 013: Statement of Cash Flows 91 Brice Corporation reported the following information: Compute Brice Corporation's cash paid to suppliers for inventory for the year ended December 31, 2009 $6,410,000 ($6,400,000 + $40,000 increase in inventory – $30,000 accounts payable increase) AACSB Tag: Analytic Difficulty: Medium L.O.: 13-40 ©2009 McGraw-Hill Inc Test Bank to accompany Libby Financial Accounting 6/e To Todownload downloadmore moreslides, slides,ebook, ebook,solutions solutionsand andtest testbank, bank,visit visithttp://downloadslide.blogspot.com http://downloadslide.blogspot.com Chapter 013: Statement of Cash Flows 92 Brice Corporation reported the following information: Compute Brice Corporation's cash paid for operating expenses for the year ended December 31, 2009 $1,050,000 ($1,250,000 – $200,000 depreciation expense expenses + $10,000 decrease in accrued liabilities) $10,000 decrease in prepaid AACSB Tag: Analytic Difficulty: Medium L.O.: 13-41 ©2009 McGraw-Hill Inc Test Bank to accompany Libby Financial Accounting 6/e To Todownload downloadmore moreslides, slides,ebook, ebook,solutions solutionsand andtest testbank, bank,visit visithttp://downloadslide.blogspot.com http://downloadslide.blogspot.com Chapter 013: Statement of Cash Flows 93 Brice Corporation reported the following information: Compute Brice Corporation's cash paid for income taxes for the year ended December 31, 2009 $180,000 ($165,000 + $15,000 decrease in income taxes payable) AACSB Tag: Analytic Difficulty: Medium L.O.: 13-42 ©2009 McGraw-Hill Inc Test Bank to accompany Libby Financial Accounting 6/e To Todownload downloadmore moreslides, slides,ebook, ebook,solutions solutionsand andtest testbank, bank,visit visithttp://downloadslide.blogspot.com http://downloadslide.blogspot.com Chapter 013: Statement of Cash Flows 94 The following information was reported from the statement of cash flows for Landlover's Restaurants for the years ending December 31, 2008 through 2010 in millions of dollars: A Calculate the quality of income ratio for the years 2008 through 2010 B Interpret the quality of income ratio for Landlover's Restaurants for the three year period A 2010 = 2.7, 2009 = 2.7, 2008 = 3.3 B Landlover's Restaurants had a strong quality of income ratio for all three years They were able to generate positive cash flow from operating activities in excess of net income in all three years AACSB Tag: Analytic Difficulty: Medium L.O.: 95 Collateral, Inc reported the following information from their statement of cash flows in millions of dollars: Calculate the quality of income ratio for 2008-2010 2010 = 1.23, 2009 = 1.26, 2008 = 1.55 AACSB Tag: Analytic Difficulty: Medium L.O.: 13-43 ©2009 McGraw-Hill Inc Test Bank to accompany Libby Financial Accounting 6/e To Todownload downloadmore moreslides, slides,ebook, ebook,solutions solutionsand andtest testbank, bank,visit visithttp://downloadslide.blogspot.com http://downloadslide.blogspot.com Chapter 013: Statement of Cash Flows 96 Pretzel Corp reported the following items in 2009 (in millions): Calculate Pretzel Corp's net cash flow from investing activities for 2009 $9.5 million net cash outflow ( $2.3 $.6 + $1.1 $8.5 + $.8) AACSB Tag: Analytic Difficulty: Medium L.O.: 97 Seneca Corporation reported the following items in 2009 (in millions): Calculate net cash flow from investing activities for 2009 $7.6 million net cash outflow ( $7.2 – $1.3 + $0.6 + $0.3) AACSB Tag: Analytic Difficulty: Medium L.O.: 13-44 ©2009 McGraw-Hill Inc Test Bank to accompany Libby Financial Accounting 6/e To Todownload downloadmore moreslides, slides,ebook, ebook,solutions solutionsand andtest testbank, bank,visit visithttp://downloadslide.blogspot.com http://downloadslide.blogspot.com Chapter 013: Statement of Cash Flows 98 Blythe Company paid $2.2 million to purchase stock in another company, $1.0 million to repurchase treasury shares, $.5 million to buy short-term investments, sold used equipment for $.8 million when its book value was $.6 million, and purchased new equipment for $3.4 million How much will be reported as net investing cash flow? $5.3 million net cash outflow ( $2.2 million $.5 million + $.8 million – $3.4 million) AACSB Tag: Analytic Difficulty: Hard L.O.: 99 The following information was available from the financial statements of Collateral, Inc for the years 2010 and 2009 in millions of dollars: A Calculate the capital acquisitions ratio for each of the two years: B Comment on the sufficiency of the capital acquisitions ratio for the two years A 2009 = 7.90, 2010 = 6.72 B The ratio appears to be more than sufficient in both years Collateral, Inc is generating $7.90 of cash flow from operations for every $1 they are investing in new plant and equipment as of 2009 and $6.72 as of 2010 This indicates they not need to borrow or issue stock to secure external financing for their expansion of plant and equipment assets AACSB Tag: Analytic Difficulty: Medium L.O.: 13-45 ©2009 McGraw-Hill Inc Test Bank to accompany Libby Financial Accounting 6/e To Todownload downloadmore moreslides, slides,ebook, ebook,solutions solutionsand andtest testbank, bank,visit visithttp://downloadslide.blogspot.com http://downloadslide.blogspot.com Chapter 013: Statement of Cash Flows 100 The following information is provided from the statement of cash flows for Tommy's Toys for the years 2007 through 2011 in millions of dollars: A Calculate the capital acquisitions ratio for Tommy's Toys for each of the five years B Comment on the capital acquisitions ratio for Tommy's Toys for the five years A 2011 =2.77, 2010 = 3.06, 2009 = 1.46, 2008 = (0.38), 2007 = 1.62 B The capital acquisitions ratio for Tommy's Toys has been erratic over the five years ranging from a low of 38 to a high of 3.06 During the five years from 2007 to 2011, the company had been investing between $262 million and $533 million in new property, plant and equipment However, their cash flow from operations was very erratic ranging from a high of $865 million in 2007 to a low of ($151) million in 2008 The ratio has been affected not only by the level of investments in these long-lived assets, but by the erratic inflow of cash from operations The negative cash flow from operating activities in 2008 meant they were unable to cover any of the $402 million invested in new property, plant and equipment AACSB Tag: Analytic Difficulty: Medium L.O.: 101 While preparing a statement of cash flows, you encountered the following transaction: February 1, 2011: Battles Corporation acquired a small office building in exchange for 5,000 shares of its own common stock; par value $10 per share; market value $15 per share A Should this transaction be shown on the statement of cash flows? B Why or why not? A Yes B Because it is a direct exchange, it is reported on the statement of cash flows in the Schedule of Non-cash Investing and Financing Transactions as "Office building, acquired for 5,000 shares of Battle Corporation's common stock, $75,000" AACSB Tag: Analytic Difficulty: Medium L.O.: 13-46 ©2009 McGraw-Hill Inc Test Bank to accompany Libby Financial Accounting 6/e To Todownload downloadmore moreslides, slides,ebook, ebook,solutions solutionsand andtest testbank, bank,visit visithttp://downloadslide.blogspot.com http://downloadslide.blogspot.com Chapter 013: Statement of Cash Flows 102 Complete the following statement of cash flows using the indirect method: 13-47 ©2009 McGraw-Hill Inc Test Bank to accompany Libby Financial Accounting 6/e To Todownload downloadmore moreslides, slides,ebook, ebook,solutions solutionsand andtest testbank, bank,visit visithttp://downloadslide.blogspot.com http://downloadslide.blogspot.com Chapter 013: Statement of Cash Flows AACSB Tag: Analytic Difficulty: Medium L.O.: 2a, 4, 103 In 2009, Tommy's Toys reported the following: proceeds from short-term borrowings of $419 million; proceeds from long-term borrowings of $147 million; long-term debt repayments of $45 million; interest paid, $128 million; treasury shares repurchased $632 million; and exercise of stock options by employees, $2 million How much is net cash flow from financing activities in 2001? $109 million net cash outflow ($419 million + $147 million – $45 million – $632 million + $2 million) AACSB Tag: Analytic Difficulty: Hard L.O.: 13-48 ©2009 McGraw-Hill Inc Test Bank to accompany Libby Financial Accounting 6/e To Todownload downloadmore moreslides, slides,ebook, ebook,solutions solutionsand andtest testbank, bank,visit visithttp://downloadslide.blogspot.com http://downloadslide.blogspot.com Chapter 013: Statement of Cash Flows 104 Kennel Co reported proceeds from short-term borrowings of $2,500,000, proceeds from long-term borrowings of $6,800,000, repayments of long-term borrowings of $3,500,000, interest payments of $780,000, repurchase of treasury shares of $500,000 and cash dividends declared of $1,100,000 Net cash flow from financing activities equals $5,300,000 net cash inflow ($2,500,000 + $6,800,000 – $3,500,000 – $500,000) AACSB Tag: Analytic Difficulty: Hard L.O.: 105 Walden Corp borrowed $1.2 million in short-term notes and $6.4 million in long-term notes They repaid $4.8 million of long-term notes plus $.6 million of interest They issued $8.7 million of common stock and paid a cash dividend of $1.2 million Net cash flow from financing activities equals $10.3 million net cash inflow ($1.2 million + $6.4 million – $4.8 million + $8.7 million – $1.2 million) AACSB Tag: Analytic Difficulty: Medium L.O.: 13-49 ©2009 McGraw-Hill Inc Test Bank to accompany Libby Financial Accounting 6/e To Todownload downloadmore moreslides, slides,ebook, ebook,solutions solutionsand andtest testbank, bank,visit visithttp://downloadslide.blogspot.com http://downloadslide.blogspot.com Chapter 013: Statement of Cash Flows Matching Questions 106 Match each activity below with the proper classification Collection of interest on a note receivable Borrowing cash from the bank Collections of dividends on long-term investments Payment of cash dividends Purchase of productive assets for cash Sales of productive assets (used in the business) Payment of debt principal with cash Issuance of capital stock for cash Operating Financing Investing Financing Financing Financing Investing Operating AACSB Tag: Relative Thinking Difficulty: Medium L.O.: 107 Indicate the proper captions for each of the transactions Purchased stock in another company Issued capital stock for a new machine Borrowed cash on a short-term note Purchased treasury stock and gave a long-term note payable Purchased land with a short-term note payable Paid a previously declared cash dividend Declared a cash dividend Not included in the statement of cash flows Financing Activities Schedule of non-cash transactions Financing Activities Financing Activities Financing Activities Operating Activities Schedule of non-cash transactions Schedule of non-cash transactions Investing Activities Investing Activities Paid interest on a note payable Borrowed cash on a long-term note 10 Purchased treasury stock for cash 11 Purchased land for cash 10 11 AACSB Tag: Relative Thinking Difficulty: Medium L.O.: 13-50 ©2009 McGraw-Hill Inc Test Bank to accompany Libby Financial Accounting 6/e ... L.O.: 13- 13 ©2009 McGraw-Hill Inc Test Bank to accompany Libby Financial Accounting 6/e To Todownload downloadmore moreslides, slides,ebook, ebook,solutions solutionsand andtest testbank, bank, visit... L.O.: 13- 3 ©2009 McGraw-Hill Inc Test Bank to accompany Libby Financial Accounting 6/e To Todownload downloadmore moreslides, slides,ebook, ebook,solutions solutionsand andtest testbank, bank, visit... L.O.: 13- 4 ©2009 McGraw-Hill Inc Test Bank to accompany Libby Financial Accounting 6/e To Todownload downloadmore moreslides, slides,ebook, ebook,solutions solutionsand andtest testbank, bank, visit