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1) Red Co. had the following transactions through December 31:
| | | |
| Cash proceeds from the sale of investment in Gold Co. stock | $ | 15,000 | |
| Dividends received on investment in Blue Co. stock | $ | 10,000 | |
| Repaid principal on a loan to the bank | $ | 35,000 | |
| Acquired investment in Yellow Co. stock | $ | 75,000 | |
| Proceeds from the disposal of factory equipment | $ | 12,000 | |
| |
What amount should Red report as net cash used by investing activities in its statement of cash flows for the period ended December 31?
Multiple Choice
a) $23,000
b) $35,000
c) $75,000
d) $48,000
2) Conceptually, interim financial statements can be described as emphasizing which of the following?
I. Timeliness
II. Relevance
III. Verifiability
Multiple Choice
a) I and III only.
b) I and II only.
c) II and III only.
d) I only.
Answer & Explanation
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