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5A. When a corporation uses the indirect method to report its operating activities, what operating...

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Accounting

5A. When a corporation uses the indirect method to report its operating activities, what operating cash flows must be reported directly either on the face of the statement of cash flows or in the notes to the financial statements?

  1. Cash paid for income taxes.
  2. Cash paid for operating expenses.
  3. A and B.
  4. Neither A nor B.

5B. The statement of cash flows for Sears Holdings Corporation for 2107 showed that the two main sources of cash inflows were from

  1. Debt issuances.
  2. Sale of property and investments.
  3. A and B.
  4. Neither A nor B.

5C. During 2015, eBay completed its divestiture of PayPal. The divestiture was reported by eBay as a discontinued operation. Which of the following statements is correct for the year ended December 31, 2015?

  1. PayPal generated $1.156 billion of cash from its operating activities.
  2. PayPal spent $2.938 billion of cash for its financing activities.
  3. A and B.
  4. Neither A nor B.

5D. Before SEC intervention, Blockbuster reported cash paid for DVDs under which section of its statement of cash flows?

A. Operating activities.

B. Investing activities.

C. Financing activities.

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