Which of the following statements regarding a statement of cash flows is not true? a. The most common method for o...
Which of the following statements regarding a statement of cash flows is not true?
|
a. |
The most common method for operating activities is the indirect method. |
|
b. |
Operating activities include all transactions involved in obtaining and disbursing resources from and to owners and repaying the amounts borrowed. |
|
c. |
It requires a reconciliation of beginning and ending cash balances. |
|
d. |
It helps users to assess a company's need for external financing. |
Homework Answers
The following statements regarding a statement of cash flows is not true:-
Operating activities include all transactions involved in obtaining and disbursing resources from and to owners and repaying the amounts borrowed.
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Which of the following statements regarding a statement of cash flows is not true? a. The most common method for o...
Which of the following is true regarding the statement of cash flows and IFRS? Cash and...
Which of the following is true regarding the statement of cash flows and IFRS? Cash and cash equivalents are defined differently under IFRS than under GAAP. Under IFRS most companies choose to use the direct method of reporting cash flows from operating activities. Companies preparing a complete set of financial statements under IFRS may exclude the statement of cash flows if the cash flow activity is reported in the notes to the financial statements. Under IFRS noncash investing and financing...
Which of the following statements is correct with respect to the Statement of Cash Flow for...
Which of the following statements is correct with respect to the Statement of Cash Flow for a Proprietary Fund on the CAFR? Multiple Choice GASB permits the statement to be prepared using the indirect method The reconciliation of income to cash flows begins with total change in net position Non-cash investing and financing transactions are not reported in the statement. The statement has four sections: Operating, Noncapital-related financing activities, Capital and related financing and Investing activities
Regarding the use of a spreadsheet for the preparation of the statement of cash flows, which...
Regarding the use of a spreadsheet for the preparation of the statement of cash flows, which of the following statements is incorrect? O A. The spreadsheet cannot be used for the direct method. OB. When companies face complex situations, a spreadsheet can help in preparing the statement of cash flows. OC. Accountants can prepare the statement of cash flows directly from the lower part of the spreadsheet OD. The spreadsheet starts with the beginning balance sheet and concludes with the...
Statement of Cash Flows (Indirect Method) Use the following information regarding the Fremont Corporation to prepare...
Statement of Cash Flows (Indirect Method) Use the following information regarding the Fremont Corporation to prepare a statement of cash flows using the indirect method: Accounts payable increase $14,000 Accounts receivable increase 7,000 Accrued liabilities decrease 5,000 Amortization expense 31,000 Cash balance, January 1 21,000 Cash balance, December 31 141,000 Cash paid as dividends 41,000 Cash paid to purchase land 81,000 Cash paid to retire bonds payable at par 70,000 Cash received from issuance of common stock 75,000 Cash received...
Statement of Cash Flows (Indirect Method) Use the following information regarding the Newcastle Corporation to prepare...
Statement of Cash Flows (Indirect Method) Use the following information regarding the Newcastle Corporation to prepare a statement of cash flows using the indirect method: Accounts payable decrease $7,000 Accounts receivable increase 9,800 Wages payable decrease 4,200 Amortization expense 22.400 Cash balance, January 1 42,000 Cash balance, December 31 9,800 Cash paid as dividends 8,400 Cash paid to purchase land 140,000 Cash paid to retire bonds payable at par 105,000 Cash received from issuance of common stock 63,000 Cash received...
Statement of Cash Flows (Indirect Method) Use the following information regarding the Fremantle Corporation to prepare...
Statement of Cash Flows (Indirect Method) Use the following information regarding the Fremantle Corporation to prepare a statement of cash flows using the indirect method Accounts payable increase Accounts receivable increase Accrued liabilities decrease Amortization expense Cash balance, January 1 Cash balance, December 31 Cash paid as dividends Cash paid to purchase land Cash paid to retire bonds payable at par Cash received from issuance of common stock 75,000 Cash received from sale of equipment Depreciation expense Gain on sale...
Below is an example of a statement of cash flows. Explain the indirect method and how...
Below is an example of a statement of cash flows. Explain the indirect method and how the cash is moving within this company. What are the differences between the indirect and direct method? Statement of Cash Flows Indirect Method For the Year Ending 12/31/2015 Cash Flows from Operating Activities: Net income Add (deduct items) not affecting cash: Depreciation expense Gain on sale of equipment 43,987 2,150 (150) (3,500) 2,800 45,287 Increase in accounts payable Net cash provided by operating activities...
When preparing a statement of cash flows on the indirect method, which of the following is...
When preparing a statement of cash flows on the indirect method, which of the following is correct? Select one: a. Proceeds from the sale of equipment should be added to net income in the operating activities section. b. A loss on the sale of land should be added to net income in the operating activities section. c. The declaration of a cash dividend should be a use of cash in the financing activities section. d. The issuance of a stock...
Question #7 Statement of Cash Flows-Indirect Method compilation (16 points) Use the following information to prepare...
Question #7 Statement of Cash Flows-Indirect Method compilation (16 points) Use the following information to prepare a statement of cash flows for Stable Equipment Company for the year ended December 31, 2018. Use the indirect method for the operating activities section of the statement. Information: Net income for the year 2018 was $5,000. Depreciation expense included in net income was $8,000. Accounts receivable decreased $2,000, while inventories increased $4,000. Accounts payable decreased $7,000. During the year, a piece of land...
Statement of Cash Flows (Indirect Method) Use the following information regarding the Newcastle Corporation to prepare...
Statement of Cash Flows (Indirect Method)
Use the following information regarding the Newcastle Corporation
to prepare a statement of cash flows using the indirect method:
Remember to use negative signs with answers when
appropriate.
Accounts payable decrease Accounts receivable increase Wages payable decrease Amortization expense Cash balance, January 1 Cash balance, December 31 Cash paid as dividends Cash paid to purchase land Cash paid to retire bonds payable at par Cash received from issuance of common stock Cash received from...
Which of the following statements is correct with respect to the Statement of Cash Flow for a Proprietary Fund on the CAFR? Multiple Choice GASB permits the statement to be prepared using the indirect method The reconciliation of income to cash flows begins with total change in net position Non-cash investing and financing transactions are not reported in the statement. The statement has four sections: Operating, Noncapital-related financing activities, Capital and related financing and Investing activities
Regarding the use of a spreadsheet for the preparation of the statement of cash flows, which of the following statements is incorrect? O A. The spreadsheet cannot be used for the direct method. OB. When companies face complex situations, a spreadsheet can help in preparing the statement of cash flows. OC. Accountants can prepare the statement of cash flows directly from the lower part of the spreadsheet OD. The spreadsheet starts with the beginning balance sheet and concludes with the...
Statement of Cash Flows (Indirect Method) Use the following information regarding the Fremont Corporation to prepare a statement of cash flows using the indirect method: Accounts payable increase $14,000 Accounts receivable increase 7,000 Accrued liabilities decrease 5,000 Amortization expense 31,000 Cash balance, January 1 21,000 Cash balance, December 31 141,000 Cash paid as dividends 41,000 Cash paid to purchase land 81,000 Cash paid to retire bonds payable at par 70,000 Cash received from issuance of common stock 75,000 Cash received...
Statement of Cash Flows (Indirect Method) Use the following information regarding the Newcastle Corporation to prepare a statement of cash flows using the indirect method: Accounts payable decrease $7,000 Accounts receivable increase 9,800 Wages payable decrease 4,200 Amortization expense 22.400 Cash balance, January 1 42,000 Cash balance, December 31 9,800 Cash paid as dividends 8,400 Cash paid to purchase land 140,000 Cash paid to retire bonds payable at par 105,000 Cash received from issuance of common stock 63,000 Cash received...
Statement of Cash Flows (Indirect Method) Use the following information regarding the Fremantle Corporation to prepare a statement of cash flows using the indirect method Accounts payable increase Accounts receivable increase Accrued liabilities decrease Amortization expense Cash balance, January 1 Cash balance, December 31 Cash paid as dividends Cash paid to purchase land Cash paid to retire bonds payable at par Cash received from issuance of common stock 75,000 Cash received from sale of equipment Depreciation expense Gain on sale...
Question #7 Statement of Cash Flows-Indirect Method compilation (16 points) Use the following information to prepare a statement of cash flows for Stable Equipment Company for the year ended December 31, 2018. Use the indirect method for the operating activities section of the statement. Information: Net income for the year 2018 was $5,000. Depreciation expense included in net income was $8,000. Accounts receivable decreased $2,000, while inventories increased $4,000. Accounts payable decreased $7,000. During the year, a piece of land...
Statement of Cash Flows (Indirect Method)
Use the following information regarding the Newcastle Corporation
to prepare a statement of cash flows using the indirect method:
Remember to use negative signs with answers when
appropriate.
Accounts payable decrease Accounts receivable increase Wages payable decrease Amortization expense Cash balance, January 1 Cash balance, December 31 Cash paid as dividends Cash paid to purchase land Cash paid to retire bonds payable at par Cash received from issuance of common stock Cash received from...
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