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Stocks 303: Understanding the Statement of Cash Flow

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1.
An income statement records only cash received.
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False. It records revenue even when the revenue has not been received.
2.
The operating activities section of the statement of cash flow covers cash flows associated with _______.
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Production and sales. It concerns itself with the cash flows of making and selling the companys products or services.
3.
Financing activities include stock and bond investments.
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True. The financing section of the statement of cash flow records a companys investments.
4.
The investing activities section of the statement of cash flow records the buying of machinery.
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True. Buying equipment is considered an investment activity by a corporation.
5.
Which of the following is not included in the statement of cash flow?
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Managing activities. The statement of cash flow does not include this.
6.
The statement of cash flow is divided into three sections. Which of the following is not one of those sections?
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Cash flows from common stock issued. Common stocks do not have their own section.