Question

Blackboard Ā Remaining Time: 2 hours, 25 minutes, 52 seconds. Question completion Status: Which of the following is NOT a section on the Statement of Cash Flows? A. Capitalizing B. Financing C. Operating D. Investing QUESTION 2 Adele Inc. operates two major business segments: Adele Fashions (a women's wear manufacturing division) and Rihanna Ann Dress Shops (a retail division). For the year ended December 31, 2019, Adele Inc. had revenues of $700,000 and expenses of $600,000, including revenues and expenses from both of its business segments. On February 12, 2019, Adele Inc. sold one of its major business segments, Rihanna Ann Dress Shops. For the period of January 1 to February 12, Rihanna Ann Dress Shops had revenues of $75,000 and expenses of $100,000. Adele ing should report what amount of income from continuing operations at December 31, 2019 ignore taxes)? O A $100,000 B. $200,000 C. $125,000) D. $125,000 QUESTION 3 Blue Baker Co, has the following items: common stock. $1,600,000; treasury stock, $210,000; deferred income taxes, $250,000 and retained earnings $780,000,

Answer 1

Answer for Question 1

Answer : A. Capitalizing

Reason : A cash flow statement is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, and break the Analysis down to operating, Investing and, financing Activities.

So, as per above definition cash flow statement include 3 sections namely, cash flow from operating activities, Cash flow from investment activities, cash flow from financing activities.

Capitalisation is a term which is ussually used relating to capitalisation of certain expense. Which othervice May use as revenue expense. But this capitalisation will come under the head cash flow from investing activities. So capitalisation is not a seperate section in cash flow statement.

Answer to Question 2

Answer :  A. $100000

Reason :  Income from continuing operations is a net income category found on the income statement that accounts for a companies regular business activities. It is also known as Operating income. Continuing operations are the primary source of income for most of the businesses.

Here, in this question we can analyse that both the segment was their primary source of income , so both are operating income. Even though the sale is incurred the amount of income from continuing operations is 700000-600000 = 100000