22. How is the amortization of patents reported in a statement of cash flows tha

Question

22. How is the amortization of patents reported in a statement of cash flows that is prepared using the direct method?
A. Not reported.
B. An increase in cash flows from operating activities.
C. A decrease in cash flows from operating activities.
D. A decrease in cash flows from investing activities.

23. Which of the following is reported as an operating activity in the statement of cash flows?
A. The payment of dividends.
B. The sale of office equipment.
C. The payment of interest on long-term notes.
D. The issuance of a stock dividend.

24. Which of the following investment securities held by Zoogle Inc. may be classified as held-to-maturity securities in its balance sheet?
A. Long-term debenture bonds.
B. Common stock.
C. Callable preferred stock.
D. All of the above are correct.

Explanation / Answer

22. How is the amortization of patents reported in a statement of cash flows that is prepared using the direct method?

AMortization expenses is not recorded under direct method of Cash flow

so answer is A. Not reported.

23. Which of the following is reported as an operating activity in the statement of cash flows?

C. The payment of interest on long-term notes.

24. Which of the following investment securities held by Zoogle Inc. may be classified as held-to-maturity securities in its balance sheet?

D. All of the above are correct.

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