ASU ACC 231 EXAM 3 -USES OF ACCOUNTING
INFORMATION I |ACTUAL QUESTIONS AND
VERIFIED ANSWERS|BRAND NEW 2026-2027
UPDATE|GRADED A+
Question 1
True/False
The statement of cash flows explains how a company generates and uses cash during an
accounting period
CORRECT ANSWER
true
Question 2
What is an example of cash flow from an operation?
A) the sale of used office equiptment for cash
B) the sale of long-term investements in capital stock
C) the sale of merchandise inventory for cash
D) none
E) all
CORRECT ANSWER
C) The sale of merchandise inventory for cash
Question 3
1
@THE STUDY VAULT
,In the terminology of the statement of cash flows, which is an example of an investing
activity?
A) the repayment of long-term debt
B) the purchase of land for a new factory
C) the purchase of merchandise inventory with cash
D) none
E) all
CORRECT ANSWER
B) the purcahse of land for a new factory
Question 4
In the terminology of the statement of cash flows, which is an example of a financing
activity?
A) the repayment of long-term debt
B) the purchase of land for a new factory
C) the purcahse of merchandise inventory with cash
D) none
E) all
CORRECT ANSWER
A) the repayment of long-term debt
Question 5
On the statement of cash flows, the payment of $50000 in dividends would be classified as
a(n)
2
@THE STUDY VAULT
, A) operating activity
B) investing activity
C) financing activity
D) the transaction would not appear on the statement of cash flows
CORRECT ANSWER
C) financing activity
Question 6
On the statement of cash flows, the payment of $40000 in interest would be classified as
a(n)
A) operating activity
B) investing activity
C) financing activity
D) the transaction would not appear on the statement of cash flows
CORRECT ANSWER
A) operating activity
Question 7
A company sells a piece of equipment and realizes a gain of $15000. At the time of the
sale, the equipment, which had been purchased for $185000, had accumulated
depreciation which totaled $120000. The proceeds from the sale must have been:
A) 50,000
B) 65,000
3
@THE STUDY VAULT
INFORMATION I |ACTUAL QUESTIONS AND
VERIFIED ANSWERS|BRAND NEW 2026-2027
UPDATE|GRADED A+
Question 1
True/False
The statement of cash flows explains how a company generates and uses cash during an
accounting period
CORRECT ANSWER
true
Question 2
What is an example of cash flow from an operation?
A) the sale of used office equiptment for cash
B) the sale of long-term investements in capital stock
C) the sale of merchandise inventory for cash
D) none
E) all
CORRECT ANSWER
C) The sale of merchandise inventory for cash
Question 3
1
@THE STUDY VAULT
,In the terminology of the statement of cash flows, which is an example of an investing
activity?
A) the repayment of long-term debt
B) the purchase of land for a new factory
C) the purchase of merchandise inventory with cash
D) none
E) all
CORRECT ANSWER
B) the purcahse of land for a new factory
Question 4
In the terminology of the statement of cash flows, which is an example of a financing
activity?
A) the repayment of long-term debt
B) the purchase of land for a new factory
C) the purcahse of merchandise inventory with cash
D) none
E) all
CORRECT ANSWER
A) the repayment of long-term debt
Question 5
On the statement of cash flows, the payment of $50000 in dividends would be classified as
a(n)
2
@THE STUDY VAULT
, A) operating activity
B) investing activity
C) financing activity
D) the transaction would not appear on the statement of cash flows
CORRECT ANSWER
C) financing activity
Question 6
On the statement of cash flows, the payment of $40000 in interest would be classified as
a(n)
A) operating activity
B) investing activity
C) financing activity
D) the transaction would not appear on the statement of cash flows
CORRECT ANSWER
A) operating activity
Question 7
A company sells a piece of equipment and realizes a gain of $15000. At the time of the
sale, the equipment, which had been purchased for $185000, had accumulated
depreciation which totaled $120000. The proceeds from the sale must have been:
A) 50,000
B) 65,000
3
@THE STUDY VAULT
