ACNT 2402Chapter 12 - Study Guide Questions and Answers(2022/2023)

Chapter 12 -- Statement of Cash Flows – Study Guide 1. Collecting the principal on a loan to another company would be reported on the investing activities section of the statement of cash flows. TRUE 2. Money received from issuing bonds payable would be included as part of a company's financing activities on the statement of cash flows. TRUE 3. The collection of a loan made to a supplier would be treated as an investing activity on a statement of cash flows. TRUE 4. Paying taxes to governmental bodies is considered a cash outflow in the operating activities section on the statement of cash flows. TRUE 5. When a company pays cash to repurchase its own common stock, this is reported as a cash outflow in the financing activities section of the statement of cash flows. TRUE 6. When a company pays a supplier for inventory it has purchased, the cash outflow is recorded in the investing activities section of the statement of cash flows. FALSE