True or False: 1. Transactions that result in significant investing and financing activities bu that do...
True or False:
1. Transactions that result in significant investing and financing activities bu that do not involve cash are reported either directly after the statement of cash flows or in a note to the financial statements
2. Nonoperating items that increase net income, such as gains on the sale of fixed assets, must be added in calculating operating cash flows
3. An increase in a current asset account, other than cash, results in an addition in calculating operating cash flows.
4. A decrease in accounts payable results in a subtraction in calculating operating cash flows.
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True or False:
1. Transactions that result in significant investing and
financing activities bu that do...
c an increase of $$1,000 from investing activities d an increase of $46,000 from investing activities and an additi...
c an increase of $$1,000 from investing activities d an increase of $46,000 from investing activities and an addition to net income of $5,000 26. Cash paid for equipment would be reported in the statement of cash flows in a the cash flows from operating activities section b. the cash flows from financing activities section c. the cash flows from investing activities section d a separate schedule 27. Which of the following types of transactions would be reported as a...
Practice Question 08 Which of the following statements is correct? Significant financing and investing activities that...
Practice Question 08 Which of the following statements is correct? Significant financing and investing activities that do not affect cash are not reported since they don't affect cash. Significant financing and investing activities that do not affect cash are reported in either a separate schedule at the bottom of the statement Significant noncash financing and investing activities are reported on the company's income statement. Only financing and investing activities that directly affect cash are reported in a company's statement of...
Which of the following is a noncash investing and financing activity? payment of a cash dividend...
Which of the following is a noncash investing and financing activity? payment of a cash dividend payment of a six-month note payable purchase of merchandise inventory on account d i nce of common stock to acquire Land 10. A company purchases equipement for $32,000 cash. This transaction should be shown on the statement of cash flows under a investing activities h financing activities C oncach investing and financing activities d. operating activities 11. Cash flow per share is a required...
|OPERATING PROFIT INFLOW DECREASE INVESTING INCREASE FINANCING OUTFLOW CASH NON-CASH A statement of cash flows is...
|OPERATING PROFIT INFLOW DECREASE INVESTING INCREASE FINANCING OUTFLOW CASH NON-CASH A statement of cash flows is a useful report that discloses all movements during the period. Classification of cash flows into operating, and financing activities provides insight into where cash came from and what it was spent on. It is important that cash flows from activities is positive, as it indicates that sufficient cash was received from business operations to cover ongoing business outflows. A significant cash under operating activities...
on- The major classifications of activities reported in the statement of cash flows are operating, investing,...
on- The major classifications of activities reported in the statement of cash flows are operating, investing, and financing. Classify each of the transactions listed below as: 1. Operating activity-add to net income. 2. Operating activity-deduct from net income. port 3. Investing activity. 4. Financing activity. 5. Reported as significant noncash activity The transactions are as follows. Transactions Classifications of Activities Issuance of common stock (b) Purchase of land and building Redemption of bonds. (d) Sale of equipment. le) Depreciation of...
What is reported on the statement of cash flows? Operating, investing, and financing activities of an...
What is reported on the statement of cash flows? Operating, investing, and financing activities of an entity for a period of time. All revenues and expense listed by operating, financing, and operating activity. Operating, investing, and financing activities of an entity at the balance sheet date. A detail of all incoming and outgoing cash flows of a business.
QUESTION 16 Which event describes a non-cash Investing and Financing activity? a. Payment of a cash...
QUESTION 16 Which event describes a non-cash Investing and Financing activity? a. Payment of a cash dividend. b. Payment on a Note Payable. Oo. Purchase of inventory on account. d. Issue of Common Stook in exchange for Land. QUESTION 17 The Net Income for the year was $275,000. Depreciation on equipment and Amortization on a patent were $40,000 and 50.000 respectively. Balances in the current assets and current liabilities were as follows: Ending Beginning Cash $50,000 500.000 Acct. Rec. $112.000...
47. Land costing $125,000 was sold for $355,000 cash. The gain on the sale was reported...
47. Land costing $125,000 was sold for $355,000 cash. The gain on the sale was reported on the income statemen other income. On the statement of cash flows, what amount should be reported as an investing activity from sale of land? A) $155,000 B) $355,000. C) $310,000. D) $230,000 48. In calculating cash flows from operating activities using the indirect method, a loss on the sale of equipment will appear as a(n) A) subtraction from net income. B) addition to...
Classify the following cash flows as operating investing, or financing activities Classy as a source or...
Classify the following cash flows as operating investing, or financing activities Classy as a source or a use of cash or indicate it is added or subjected on the Statement of Canon 1. Issued bonds payable. 2. Purchased shares as an investment 3. Issued common shares for cash 4. Paid dividends. 5. Increase in Accounts Receivable 6. Received payments from customers 7. Collected proceeds from sale of long-term investments 8. A loss on the Income Statement 9. Paid Accounts Payable...
3. Operating, Investing, and financing activities and cash flows The statement of cash flows reports a...
3. Operating, Investing, and financing activities and cash flows The statement of cash flows reports a company's cash inflows and outflows for a given accounting period by categorizing the company's sources and uses of cash as either operating, investing, or financing activities. Determine whether the activities described in the following table should be categorized as operating, investing, or financing activities in the statement of cash flows. activities Investing activities Financing activities Alexander Co. purchased a factory for $920,000. Doran Industries...
c an increase of $$1,000 from investing activities d an increase of $46,000 from investing activities and an addition to net income of $5,000 26. Cash paid for equipment would be reported in the statement of cash flows in a the cash flows from operating activities section b. the cash flows from financing activities section c. the cash flows from investing activities section d a separate schedule 27. Which of the following types of transactions would be reported as a...
Practice Question 08 Which of the following statements is correct? Significant financing and investing activities that do not affect cash are not reported since they don't affect cash. Significant financing and investing activities that do not affect cash are reported in either a separate schedule at the bottom of the statement Significant noncash financing and investing activities are reported on the company's income statement. Only financing and investing activities that directly affect cash are reported in a company's statement of...
Which of the following is a noncash investing and financing activity? payment of a cash dividend payment of a six-month note payable purchase of merchandise inventory on account d i nce of common stock to acquire Land 10. A company purchases equipement for $32,000 cash. This transaction should be shown on the statement of cash flows under a investing activities h financing activities C oncach investing and financing activities d. operating activities 11. Cash flow per share is a required...
|OPERATING PROFIT INFLOW DECREASE INVESTING INCREASE FINANCING OUTFLOW CASH NON-CASH A statement of cash flows is a useful report that discloses all movements during the period. Classification of cash flows into operating, and financing activities provides insight into where cash came from and what it was spent on. It is important that cash flows from activities is positive, as it indicates that sufficient cash was received from business operations to cover ongoing business outflows. A significant cash under operating activities...
on- The major classifications of activities reported in the statement of cash flows are operating, investing, and financing. Classify each of the transactions listed below as: 1. Operating activity-add to net income. 2. Operating activity-deduct from net income. port 3. Investing activity. 4. Financing activity. 5. Reported as significant noncash activity The transactions are as follows. Transactions Classifications of Activities Issuance of common stock (b) Purchase of land and building Redemption of bonds. (d) Sale of equipment. le) Depreciation of...
What is reported on the statement of cash flows? Operating, investing, and financing activities of an entity for a period of time. All revenues and expense listed by operating, financing, and operating activity. Operating, investing, and financing activities of an entity at the balance sheet date. A detail of all incoming and outgoing cash flows of a business.
QUESTION 16 Which event describes a non-cash Investing and Financing activity? a. Payment of a cash dividend. b. Payment on a Note Payable. Oo. Purchase of inventory on account. d. Issue of Common Stook in exchange for Land. QUESTION 17 The Net Income for the year was $275,000. Depreciation on equipment and Amortization on a patent were $40,000 and 50.000 respectively. Balances in the current assets and current liabilities were as follows: Ending Beginning Cash $50,000 500.000 Acct. Rec. $112.000...
47. Land costing $125,000 was sold for $355,000 cash. The gain on the sale was reported on the income statemen other income. On the statement of cash flows, what amount should be reported as an investing activity from sale of land? A) $155,000 B) $355,000. C) $310,000. D) $230,000 48. In calculating cash flows from operating activities using the indirect method, a loss on the sale of equipment will appear as a(n) A) subtraction from net income. B) addition to...
Classify the following cash flows as operating investing, or financing activities Classy as a source or a use of cash or indicate it is added or subjected on the Statement of Canon 1. Issued bonds payable. 2. Purchased shares as an investment 3. Issued common shares for cash 4. Paid dividends. 5. Increase in Accounts Receivable 6. Received payments from customers 7. Collected proceeds from sale of long-term investments 8. A loss on the Income Statement 9. Paid Accounts Payable...
3. Operating, Investing, and financing activities and cash flows The statement of cash flows reports a company's cash inflows and outflows for a given accounting period by categorizing the company's sources and uses of cash as either operating, investing, or financing activities. Determine whether the activities described in the following table should be categorized as operating, investing, or financing activities in the statement of cash flows. activities Investing activities Financing activities Alexander Co. purchased a factory for $920,000. Doran Industries...
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