30 Dec investing activities
Question 1
3 / 3 pts
(TCO 7) The chairperson of the board of directors has the title of
chief financial officer (CFO).
president.
chief executive officer (CEO).
chief operating officer (COO).
Question 2
3 / 3 pts
(TCO 7) If a corporation has only one class of stock, it is understood to be
preferred stock.
common stock.
contributory stock.
equity stock.
Question 3
3 / 3 pts
(TCO 7) When a company issues common stock greater than its par value, the excess should be credited to
retained earnings.
common stock.
paid-in capital in excess of par.
capital.
Question 4
3 / 3 pts
(TCO 7) Stock that a corporation purchases from shareholders is called
treasury stock.
authorized stock.
issued stock.
outstanding stock.
Question 5
3 / 3 pts
(TCO 7) The date when a cash dividend becomes a legal obligation is on the
date of record.
declaration date.
last day of the corporate year.
payment date.
Question 6
3 / 3 pts
(TCO 7) Book value per share of common stock is computed by dividing
total paid-in capital by the number of common shares of stock issued.
total paid-in capital by the number of common shares of stock outstanding.
total stockholders’ equity by the number of common shares of stock issued.
total stockholders’ equity by the number of common shares of stock outstanding.
Question 7
3 / 3 pts
(TCO 1) The main purpose of the statement of cash flows is to
provide information about the cash receipts and cash payments during a period.
provide information about the investing and financing activities during a period.
prove that revenues exceed expenses if there is a net income.
assist banking relationships.
Question 8
3 / 3 pts
(TCO 1) Creditors analyze the statement of cash flows to determine
total interest earned during the period.
the quality of the company’s earnings.
whether or not the company can pay interest on debt.
if management was overpaid.
Question 9
3 / 3 pts
(TCO 1) The three types of activities reported on the statement of cash flows are
operating, investments, and financing.
operating, investing, and free flow.
operating, investing, and financing.
operating, indirect, and direct.
Question 10
3 / 3 pts
(TCO 1) Usually, the most important category on the statement of cash flows is cash flows from
operating activities.
investing activities.
financing activities.
noncash activities.
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