Reference no: EM132557937

Problem 1 - What must be done on the date of records?

A) No entry is required

B) Debit retained earnings and credit dividends payable

C) debit dividends payable and credit cash

D) Debit dividends and credit retained earnings

Problem 2 - A purchase of new equipment on a note payable under the direct method is reported?

A) in the operating section of the cash flow statement

B) as a separate disclosure as a non-cash transaction

C) in the investing section of the cash flow statement

D) In the financing section on the cash flow statement

Problem 3 - Of the following which is not classified as an inventory activity on the statement of cash flows?

A) selling goods and service

B) collecting the principal on loans

C) purchasing land

D) sales of equipment for cas