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The investing activities section of the statement of cash flow records the buying of machinery.

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True

False

True. Buying equipment is considered an investment activity by a corporation.

Which of the following is not included in the statement of cash flow?

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Financing activities

Operating activities

Managing activities

Investing activities

Managing activities. The statement of cash flow does not include this.

In a statement of cash flow, accounts receivable are listed in the section on cash flows from operating activities.

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True

False

True. Accounts receivable are operating activities.

In the operating activities section of the statement of cash flow, you will find information on stock dividends paid.

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True

False

False. The operating activities section of the statement of cash flow does not cover stock. It concerns itself only with cash flow related to production and sales.

An income statement records only cash received.

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True

False

False. It records revenue even when the revenue has not been received.

Financing activities include stock and bond investments.

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True

False

True. The financing section of the statement of cash flow records a companys investments.

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