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By Finance Mcqs No Comments

Standard Corporation sold fully depreciated equipment for Rs.5,000. This transaction will be reported on the cash flow statement as a(n):

A. Operating activity
B. Investing activity
C. Financing activity
D. None of the given options

Investing activities – changes in investments and long-term assets
Cash inflows:
From sale of property, plant, and equipment.
From sale of investments in debt or equity securities of other entities.
From collection of principal on loans to other entities.
Cash outflows:
To purchase property, plant, and equipment.
To purchase investments in debt or equity securities of other entities.
To make loans to other entities..

Related Mcqs:

  1. Cash flow which starts negative than positive then again positive cash flow is classified as__________?

    A. Normal costs
    B. Non-normal costs
    C. Non-normal cash flow
    D. Normal cash flow

  2. The price per share is $25 and the cash flow per share is $6 then the price to cash flow ratio would be ___________?

    A. 0.24 times
    B. 4.16 times
    C. 0.0416
    D. 0.24

  3. In alternative investments, the constant cash flow stream is equal to initial cash flow stream in the approach which is classified as __________?

    A. greater annual annuity method
    B. equivalent annual annuity
    C. lesser annual annuity method
    D. zero annual annuity method

  4. The cash flow which starts negative then positive then again positive cash flow is classified as ___________?

    A. normal costs
    B. non-normal costs
    C. non-normal cash flow
    D. normal cash flow

  5. Standard Company had net sales of Rs. 750,000 over the past year. During that time, average receivables were Rs. 150,000. Assuming a 365-day year, what was the average collection period?

    A. 5 days
    B. 36 days
    C. 48 days
    D. 73 days

  6. During the accounting period, sales revenue is Rs. 25,000 and accounts receivable increases by Rs. 8,000. What will be the amount of cash received from customers for the period?

    A. Rs. 33,000
    B. Rs. 25,000
    C. Rs. 17,000
    D. Rs. 8,000

  7. Which of the following costs are reported on the income statement as the cost of goods sold?

    A. Product cost
    B. Period cost
    C. Both product cost and period cost
    D. Neither product cost nor period cost

  8. Cash flows occurring with more than one change in sign of cash flow are classified as________?

    A. Non-normal cash flow
    B. Normal cash flow
    C. Normal costs
    D. Non-normal costs

  9. The cash flows occurring with more than one change in sign of cash flow are classified as __________?

    A. non-normal cash flow
    B. normal cash flow
    C. normal costs
    D. non-normal costs

  10. The bonds that are backed by cash flow from project and are sold to finance particular project are classified as ____________?

    A. finance bonds
    B. revenue bonds
    C. financing bonds
    D. project bonds

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The correct answer to the question: "Standard Corporation sold fully depreciated equipment for Rs.5,000. This transaction will be reported on the cash flow statement as a(n):" is "Investing activity".

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