Analysis Intermediate: Understanding the Statement of Cash Flow

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1.
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.
2.
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.
3.
In which part of the statement of cash flow would you find debt issues recorded?
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Cash flows from financing activities. Debts are listed in this section.
4.
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.
5.
An income statement records only cash received.
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False. It records revenue even when the revenue has not been received.
6.
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.