ACNT 2402 Chapter 12 -- Statement of Cash Flows Questions and Answers 2023& study guide with complete solution

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 7. In the statement of cash flows, collecting cash from customers is treated as a cash inflow in the financing activities section. TRUE 8. Paying wages and salaries to employees is classified as a cash outflow in the operating activities section of the statement of cash flows. TRUE 9. Investing activities on the statement of cash flows generate cash inflows and outflows related to borrowing from and repaying principal to creditors and complet