Chapter 13
The Statement of Cash Flows
Multiple Choice
1. (LO 1—The purpose of the statement of cash flows)
2. (LO 1—The purpose of the statement of cash flows)
Answer: B
3. (LO 1—Cash flows from financing activities)
Answer: D
4. (LO 1—Cash flows from investing activities)
5. (LO 1—Cash flows from operating activities)
6. (LO 2—Direct versus indirect method)
7. (LO 2—Direct versus indirect method)
8. (LO 2—Cash paid to suppliers)
9. (LO 3—Cash collections from customers)
Solutions to Multiple Choice
MC13–2
10. (LO 3—Cash outflows for purchases)
11. (LO 3—Cash outflows for insurance)
12. (LO 3—Cost of goods purchased)