FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Classifying
Identify whether each of the following would be reported as an operating, investing, or financing activity on the statement of cash flows:
a. Retirement of bonds payable | |
b. Purchase of inventory for cash | |
c. Cash sales | |
d. Repurchase of common stock | |
e. Payment of accounts payable | |
f. Disposal of equipment |
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- When deducing cash flow numbers, which of the following refers to a reflection of value? Select an answer: accounts receivable wage expenses accounts payable income statementarrow_forwardMatch the individual transactions listed below with their statement of cash flows classification, using the following code: Cash inflow from operating activitiesCash outflow from operating activitiesCash inflow from investing activitiesCash outflow from investing activitiesCash inflow from financing activitiesCash outflow from financing activitiesNone of the above Payments for merchandisePayments for interestPayments for dividendsPayments for plant and equipmentPayments for bond payable retirementsPayments for marketable securitiesPayments for employeesPayments to governmentsIssuing a stock dividendCash from customersCash from issuing common shareCash from dividendsCash from sale of old buildingCash from interestarrow_forwardOn the statement of cash flows prepared by the indirect method, the operating activities section would include Oa. receipts from the issuance of capital stock Ob. payments for cash dividends c. receipts from the sale of investments Od. gains or losses on fixed assetsarrow_forward
- Identify the section of the statement of cash flows (a–d) where each of the following items would be reported.a. Operating activitiesb. Financing activitiesc. Investing activitiesd. Schedule of noncash financing and investing Increase in income taxes payable Where does this will be on the cash flow statement ?arrow_forwardWhich of the following sections from the statement of cash flows includes activities that affect current assets and current liabilities on the balance sheet? a. Investing b. None-cash investing and financing. c. Operating d. Financingarrow_forwardClassifying Items in the Statement of Cash Flows The following items are commonly reported in a statement of cash flows (indirect method presentation). For each item 1 through 20, determine (a) in which section the item is presented (operating, investing, or financing) and (b) whether the associated dollar amount is added or subtracted in the statement. (a) (b) 1. Payments of short-term debt. Answer Answer 2. Repurchases of common stock. Answer Answer 3. Purchases of property and equipment. Answer Answer 4. Sale of investments classified as long-term. Answer Answer 5. Proceeds from the issuance of common stock. Answer Answer 6. Increase in prepaid expenses and other current assets. Answer Answer 7. Acquisition for cash of a competitor. Answer Answer 8. Increase in current income tax payable. Answer Answer 9. Decrease in accounts payable. Answer Answer 10. Dividends paid to stockholders. Answer Answer 11.…arrow_forward
- Which of the following is reported as an investing activity in the statement of cash flows? The payment of interest on bonds The receipt of dividend revenue The payment of cash dividends The sale of machineryarrow_forwardOn the statement of cash flows, the cash flows from investing activities section would include a. payments for retirement of bonds payable b. receipts from the issuance of common stock c. payments for dividends d. receipts from the sale of investmentsarrow_forwardWhich of the following is reported under the Financing Activities in the Statement of Cash Flow? O Collection of account receivable O Cash payment to suppliers Issuance of bonds payable O Sale of buildingarrow_forward
- Which of the following best describes the indirect method of preparing the operating activities section of the statement of cash flows? a. Net income reconciled from accrual basis to cash basis.b. A list of cash inflows and cash outflows from transactions involving the purchase and sale of longterm assets and current investments.c. A list of cash inflows and cash outflows from transactions related to revenue and expense activities.d. A list of cash inflows and cash outflows from transactions with lenders and stockholders.arrow_forwardOn the statement of cash flows, the cash flows from investing activities section would include a.payments for dividends b.payments for the retirement of bonds payable c.receipts from the issuance of common stock d.receipts from the sale of investmentsarrow_forwardSelect the item that matches with the description. Descriptions a. Begins with net income and then lists adjustments to net income in order to arrive at operating cash flows. b. Item included in net income, but excluded from net operating cash flows. c. Net cash flows from operating activities divided by average total assets. d. Cash transactions involving lenders and investors. e. Cash transactions involving net income. f. Cash transactions for the purchase and sale of long-term assets. g. Purchase of long-term assets by issuing stock to seller. h. Shows the cash inflows and outflows from operations such as cash received from customers and cash paid for inventory, salaries, rent, interest, and taxes. Termsarrow_forward
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