Hey I'm back again with some more questions!
1. Cash paid for equipment would be reported in the statement of cash flows in ________.
a) the cash flows from operating activities section
b) the cash flows from financing activities section
c) the cash flows from investing activities section
d) a seperate schedule
2. If accounts payable have increased during a period
a) revenues on an accrual basis are less than revenues on a cash basis
b) expenses on an accrual basis are less than expenses on a cash basis
c) expenses on an accrual basis are the same as expenses on a cash basis
d) expenses on an accrual basis are greater than expenses on a cash basis
3. Income tax was $400,000 for the year. Income tax payable was $30,000 and $40,000 at the beginning and end of the year. Cash payments for income tax reported on the cash flow statement using the direct method is _______.
a) 400,000
b) 390,000
c) 430,000
d) 440,000
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