68. Which one of the following is considered a financing activity? A. The payment of interest on a note payable to the bank. B. Selling products to customers C. Paying wages to employees D. The payment of a cash dividend. 69. Which one of the following statements is true? A. The two primary sources of financing available to corporations are borrowed funds and funds invested by owners B. Financing activities involve the acquisition of property, plant and equipment. C. Borrowed funds are a more permanent source of financing than funds invested by owners D. Investing activities involve the selling of products or services and the incurring of expenses related to selling these products and services 70. Frankfurt Shoes Frankfurt Shoes reported the following items on its statement of cash flows for the current year: Net cash inflows from operating activities $70,000 Net cash outflows from investing activities (20,000) Net cash outflows from financing activities (40,000) Cash balance at the beginning of the year 30,000 Read the information about Frankfurt Shoes. What was the amount of net increase or decrease in the cash balance for Frankfurt Shoes for the current year? A. $ 10,000 increase B. $ 30,000 increase C. $ 40,000 increase D. $ 70,000 increase 71. Frankfurt Shoes Frankfurt Shoes reported the following items on its statement of cash flows for the current year: Net cash inflows from operating activities $70,000 Net cash outflows from investing activities (20,000) Net cash outflows from financing activities (40,000) Cash balance at the beginning of the year 30,000
68. Which one of the following is considered a financing activity? A. The payment of interest on a note payable to the bank. B. Selling products to customers C. Paying wages to employees D. The payment of a cash dividend. 69. Which one of the following statements is true? A. The two primary sources of financing available to corporations are borrowed funds and funds invested by owners B. Financing activities involve the acquisition of property, plant and equipment. C. Borrowed funds are a more permanent source of financing than funds invested by owners D. Investing activities involve the selling of products or services and the incurring of expenses related to selling these products and services 70. Frankfurt Shoes Frankfurt Shoes reported the following items on its statement of cash flows for the current year: Net cash inflows from operating activities $70,000 Net cash outflows from investing activities (20,000) Net cash outflows from financing activities (40,000) Cash balance at the beginning of the year 30,000 Read the information about Frankfurt Shoes. What was the amount of net increase or decrease in the cash balance for Frankfurt Shoes for the current year? A. $ 10,000 increase B. $ 30,000 increase C. $ 40,000 increase D. $ 70,000 increase 71. Frankfurt Shoes Frankfurt Shoes reported the following items on its statement of cash flows for the current year: Net cash inflows from operating activities $70,000 Net cash outflows from investing activities (20,000) Net cash outflows from financing activities (40,000) Cash balance at the beginning of the year 30,000
Test-Bank-Using-Financial-Accounting-Information-7th-Edition-Porter.docx