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11 cash flows from investing activities as part of the statement of cash flows inclu 4295196

 

 

11. Cash flows from investing activities, as part of the statement of cash flows, include receipts from the issuance of bonds payable. 
 

 

12. There are two alternatives to reporting cash flows from operating activities in the statement of cash flows: (1) the direct method and (2) the indirect method. 
 

 

13. The direct method of preparing the operating activities section of the statement of cash flows reports major classes of gross cash receipts and gross cash payments. 
 

 

14. Under the direct method of reporting cash flows from operations, the major source of cash is cash received from customers. 
 

 

15. The main disadvantage of the direct method of reporting cash flows from operating activities is that the necessary data are often costly to accumulate. 
 

 

16. A major disadvantage of the indirect method of reporting cash flows from operating activities is that the difference between the net amount of cash flows from operating activities and net income is emphasized. 
 

 

17. Cash outflows from financing activities include the payment of cash dividends, the acquisition of treasury stock, and the repayment of amounts borrowed. 
 

 

18. Cash flows from investing activities, as part of the statement of cash flows, include payments for the acquisition of fixed assets. 
 

 

19. The acquisition of land in exchange for common stock is an example of noncash investing and financing activity. 
 

 

20. If a business issued bonds payable in exchange for land, the transaction would be reported in a separate schedule on the statement of cash flows. 
 

 

 

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