Reference no: EM132582356

Question 1: Shares that have been sold and are in the hands of stockholders are called

1. Treasury.

2. Underwritten.

3. Outstanding.

4. Issued.

Question 2: The amount of cash paid to acquire a new asset like equipment would appear in the investing section on the cash flow statement as a positive amount while the cash received from selling any assets would appear in the same section as a negative amount.

True

False

Question 3: Even though cash flows from operating activities can be recorded on the Statement of Cash Flows using either the direct or indirect method, the total net cash provided by operating activities amounts to the same for both methods.

True

False

Question 4: Does treasury stock represent?

1. Shares of ownership in the United States Treasury Department.

2. A current asset.

3. Authorized shares that have never been issued.

4. Previously outstanding shares that have been repurchased by the issuing company.