Analysis Intermediate: Understanding the Statement of Cash Flow

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1.
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.
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.
The statement of cash flow records inflows and outflows of cash as soon as income is earned or expenses incurred.
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False. It records income and expenses regardless of when they were earned or incurred.
4.
The ABC Company has just bought 1 million shares of the XYZ Company. It will record this purchase as a cash outflow.
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True. Because money left ABC to pay for the securities, the purchase is a cash outflow.
5.
Equipment expenditures are included in which section of the statement of cash flow?
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Investing activities. Equipment is considered an investment.
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.