A company acquires equipment for $75,000 cash. This represents a(n): Financing activity. Revenue activity. Expense activity. Operating activity. Investing activity. Answer: E Explanation: A) B) C) D) E) Diff: 2 Topic: Financial Statements Learning Objective: 01-P2 Identify and prepare basic financial statements and explain how they interrelate. Bloom's: Understand AACSB: Analytical Thinking AICPA: BB Industry; FN Reporting A company borrows $125,000 from the Northern Bank and receives the loan proceeds in cash. This represents a(n): Operating activity. Financing activity. Investing activity. Revenue activity. Expense activity. Answer: B Explanation: A) B) C) D) E) Diff: 2 Topic: Financial Statements Learning Objective: 01-P2 Identify and prepare basic financial statements and explain how they interrelate. Bloom's: Understand AACSB: Analytical Thinking AICPA: BB Industry; FN Reporting Zippy had cash inflows from operations $60,500; cash outflows from investing activities of $47,000; and cash inflows from financing of $25,000. The net change in cash was: $132,000 increase. $132,500 decrease. $38,500 decrease. $11,500 decrease.
A company acquires equipment for $75,000 cash. This represents a(n): Financing activity. Revenue activity. Expense activity. Operating activity. Investing activity. Answer: E Explanation: A) B) C) D) E) Diff: 2 Topic: Financial Statements Learning Objective: 01-P2 Identify and prepare basic financial statements and explain how they interrelate. Bloom's: Understand AACSB: Analytical Thinking AICPA: BB Industry; FN Reporting A company borrows $125,000 from the Northern Bank and receives the loan proceeds in cash. This represents a(n): Operating activity. Financing activity. Investing activity. Revenue activity. Expense activity. Answer: B Explanation: A) B) C) D) E) Diff: 2 Topic: Financial Statements Learning Objective: 01-P2 Identify and prepare basic financial statements and explain how they interrelate. Bloom's: Understand AACSB: Analytical Thinking AICPA: BB Industry; FN Reporting Zippy had cash inflows from operations $60,500; cash outflows from investing activities of $47,000; and cash inflows from financing of $25,000. The net change in cash was: $132,000 increase. $132,500 decrease. $38,500 decrease. $11,500 decrease.
Test-Bank-for-Fundamental-Accounting-Principles-23rd-Edition-By-Wild.docx