Question 1

Royer Corporation engaged in this transaction: Retired long-term debt with cash.
Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.

Accepted Answer

Retiring long-term debt is typically classified as a financing activity on a statement of cash flows because it involves a significant movement of cash between the company and its creditors.

Question 2

Royer Corporation engaged in this transaction: Repaid 90-day note payable.
Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.

Accepted Answer

Repayment of a note payable is a financing activity and would appear in the financing activities section of the statement of cash flows.

Question 3

Royer Corporation engaged in this transaction: Converted loans payable to stock.
Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.

Accepted Answer

The transaction of converting loans payable to stock is a noncash financing transaction and therefore would appear on the schedule of noncash investing and financing transactions.

Question 4

Royer Corporation engaged in this transaction: Acquired long-term investment by issuance of long-term debt.
Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.

Accepted Answer

The answer of Royer Corporation engaged in this transaction: Acquired...

Question 5

Royer Corporation engaged in this transaction: Purchased land and building with a mortgage.
Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.

Accepted Answer

The answer of Royer Corporation engaged in this transaction: Purchased...

Question 6

Royer Corporation engaged in this transaction: Received dividends on securities held.
Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.

Accepted Answer

The receipt of dividends on securities held is a cash inflow from operating activities and would appear in the operating activities section of the statement of cash flows.

Question 7

Royer Corporation engaged in this transaction: Paid employee wages.
Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.

Accepted Answer

The transaction of paying employee wages represents an operating activity and would therefore appear in the Operating activities section of the statement of cash flows.

Question 8

Royer Corporation engaged in this transaction: Purchased 30-day U.S.Treasury bill.
Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.

Accepted Answer

The answer of Royer Corporation engaged in this transaction: Purchased...

Question 9

Royer Corporation engaged in this transaction: Abandoned fully depreciated equipment.
Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.

Accepted Answer

The answer of Royer Corporation engaged in this transaction: Abandoned...

Question 10

Royer Corporation engaged in this transaction: Issued long-term note for plant assets.
Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.

Accepted Answer

The answer of Royer Corporation engaged in this transaction: Issued...

Question 11

Royer Corporation engaged in this transaction: Issued stock for equipment.
Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.

Accepted Answer

The answer of Royer Corporation engaged in this transaction: Issued...

Question 12

Royer Corporation engaged in this transaction: Sold long-term investment.
Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.

Accepted Answer

The sale of a long-term investment would be considered an investing activity and thus would appear in the investing activities section of the statement of cash flows.

Question 13

Royer Corporation engaged in this transaction: Issued common stock for cash.
Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.

Accepted Answer

Issuing common stock for cash represents a financing activity, as it involves raising funds from investors. Therefore, this transaction would be reported in the financing activities section of the statement of cash flows.

Question 14

Royer Corporation engaged in this transaction: Paid income taxes.
Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.

Accepted Answer

Payment of income taxes is an operating activity and would be included in the operating activities section of the statement of cash flows.

Question 15

Royer Corporation engaged in this transaction: Received interest on an investment in a long-term note.
Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.

Accepted Answer

The answer of Royer Corporation engaged in this transaction: Received...

Question 16

Royer Corporation engaged in this transaction: Repaid ten-year note payable.
Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.

Accepted Answer

Repaying a note payable is a financing activity, which involves the repayment of borrowed funds. Therefore, the transaction would appear in the financing activities section of the statement of cash flows.

Question 17

Royer Corporation engaged in this transaction: Purchased land for cash.
Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.

Accepted Answer

The transaction of purchasing land for cash would appear in the Investing activities section of the statement of cash flows. This section reflects the cash inflows and outflows from investing activities such as the purchase or sale of long-term assets like land, buildings, or equipment.

Question 18

Royer Corporation engaged in this transaction: Paid interest on note.
Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.

Accepted Answer

The answer of Royer Corporation engaged in this transaction: Paid...

Question 19

Royer Corporation engaged in this transaction: Transferred cash to money market account.
Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.

Accepted Answer

The answer of Royer Corporation engaged in this transaction: Transferred...

Question 20

Royer Corporation engaged in this transaction: Purchased one-year insurance policy for cash.
Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.

Accepted Answer

This transaction represents an outflow of cash used in operating activities, as it is a payment for an expense necessary to keep the business running. Therefore, it would appear in the operating activities section of the statement of cash flows.

Quiz 14: The Statement of Cash Flows

Royer Corporation engaged in this transaction: Retired long-term debt with cash. Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.

Royer Corporation engaged in this transaction: Repaid 90-day note payable. Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.

Royer Corporation engaged in this transaction: Converted loans payable to stock. Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.

Royer Corporation engaged in this transaction: Acquired long-term investment by issuance of long-term debt. Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.

Royer Corporation engaged in this transaction: Purchased land and building with a mortgage. Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.

Royer Corporation engaged in this transaction: Received dividends on securities held. Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.

Royer Corporation engaged in this transaction: Paid employee wages. Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.

Royer Corporation engaged in this transaction: Purchased 30-day U.S.Treasury bill. Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.

Royer Corporation engaged in this transaction: Abandoned fully depreciated equipment. Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.

Royer Corporation engaged in this transaction: Issued long-term note for plant assets. Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.

Royer Corporation engaged in this transaction: Issued stock for equipment. Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.

Royer Corporation engaged in this transaction: Sold long-term investment. Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.

Royer Corporation engaged in this transaction: Issued common stock for cash. Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.

Royer Corporation engaged in this transaction: Paid income taxes. Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.

Royer Corporation engaged in this transaction: Received interest on an investment in a long-term note. Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.

Royer Corporation engaged in this transaction: Repaid ten-year note payable. Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.

Royer Corporation engaged in this transaction: Purchased land for cash. Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.

Royer Corporation engaged in this transaction: Paid interest on note. Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.

Royer Corporation engaged in this transaction: Transferred cash to money market account. Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.

Royer Corporation engaged in this transaction: Purchased one-year insurance policy for cash. Indicate which section,if any,the above transaction would appear in,or relate to,on a statement of cash flows.