25. Cash Flow

Question 1

In which section of the cash flow statement does interest expense and interest revenue appear?

Answer 1

Cash flows from operating activities

Question 2

In which section(s) of the cash flow statement do divided income and dividend expense appear?

Answer 2

Dividend income appears in cash flows from operating activities. Dividend expense appears in cash flows from financing activities (because it is a distribution to owners).

Question 3

In which section of the cash flow statement do notes receivable appear?

Answer 3

Cash flows from investing activities

Question 4

In which section of the cash flow statement do purchases and sales of PP&E appear?

Answer 4

Cash flow from investing activities

Question 5

In which section of the cash flow statement do notes payable and bonds payable appear?

Answer 5

Cash flows from financing activities