When Preparing a Statement of Cash Flows Using the Indirect

question 48

Multiple Choice

When preparing a statement of cash flows using the indirect method,which of the following is correct?

• A)Proceeds from the sale of equipment should be added to net income in the operating activities section.
• B)A loss on the sale of land should be added to net income in the operating activities section.
• C)The declaration of a cash dividend should be a use of cash in the financing activities section.
• D)The issuance of a stock dividend should be a use of cash in the financing activities section.
• E)The purchase of land and a building by issuing a long-term note payable should be a source of cash in the financing activities section.