Some transactions that don't increase or decrease cash must be reported inconjunction with a statement of cash flows. What activity of this type did Targetreport during each of the three years presented? What are two other such. activitiesthat some companies might report?
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- Assume a company has a $350 credit (not cash) sale. How would the transaction appear if the business uses accrual accounting? A. $350 would show up on the balance sheet as a sale. B. $350 would show up on the income statement as a sale. C. $350 would show up on the statement of cash flows as a cash outflow. D. The transaction would not be reported because the cash was not exchanged.Some transactions that don’t increase or decrease cash must be reported inconjunction with a statement of cash flows. What activity of this type did Targetreport during each of the three years presented? What are two other such activitiesthat some companies might report?Match the words to the definitions. Solvency Accounts Receivable Balance Sheet Noncurrent Assets Income Statement Retained Earnings Noncurrent Liabilities. Liquidity Current Assets Cash Flow Statement ✓ [Choose ] A forecast of the amount and timing of future cash inflows and outflows over some period of time. A summary of the revenues and expenses of a business over a given period of time. When net worth is greater than zero, or assets are greater than liabilities on the balance sheet. The ability to meet the day-to-day cash needs of the firm. Profits that are not paid out in dividends but are reinvested in the firm itself. Summarizes a firm's financial position at a given point in time and lists the firm's assets, liabilities, and net worth. Debts that others owe the business, usually arising from previous credit sales. Something the firms owns or uses that will not turn into cash within the next accounting period. Either cash or an items that will become cash in the next accounting…
- ductory financial accounting_ Liquidity is simply: O a. another term for non-current assets O b. a company's ability to pay obligations when due O c. another term for current liabilities O d. another term for cash ype here to searchAddison Company experienced an accounting event that affected its financial statements as indicated below: Balance Sheet Assets = Liabilities + + Stockholders' Equity + Multiple Choice Issued common stock Income Statement Earned revenue on account Revenue + Which of the following accounting events could have caused these effects on Addison's financial statements? Earned cash revenue - Collected cash from customers in partial settlement of its accounts receivable. Net Expense = income + Statement of Cash FlowsIDENTIFY THE EFFECT OF THE FOLLOWING TRANSACTION TO THE RISK OF MATERIAL MISSTATEMENT TO FINANCIAL STATEMENTS. The company has shown an ability to generate a positive cash flow from operations, while reporting earnings and earnings growth. Does it have a: A. INCREASE effect B. DECREASE effect C. NO EFFECT effect
- nu messageQ&A notifications account_circle Business FinanceQ&A LibraryPlease classify each of the following accounts into its right category of cash flow activities. Which of the following item(s) belong to Operation Activities? (This question may contain multiple answers) Depreciation Fixed assets expenses Change in Inventories Change in Accounts Payable Payment of cash dividends Change in Notes Payable Payment of long-term debt Change in marketable securities Net income Change in Account Receivables Please classify each of the following accounts into its right category of cash flow activities. Which of the following item(s) belong to Operation Activities? (This question may contain multiple answers) Depreciation Fixed assets expenses Change…a. IAS 7 would prefer enterprises to use the direct method of presenting cash flow statement. However, almost all enterprises use the indirect method of presentation. Why do the accounting standard and most companies appear to differ on this issue? b. Cash flow statements are valuable source of information. However, there are certain important non-cash transactions that may occur during the year which will not be reported in a cash flow statement. Give any four (4) of such transactions.Which of the following statements is true? If a company reports net income on its income statement, it should report an increase in cash on its statement of cash flows. If a company reports a net loss on its income statement, it should report a decrease in cash on its statement of cash flows. If a company uses the accrual basis of accounting, it will improve its cash position if it reports net income for the same period. If a company uses the accrual basis of accounting, its cash balance can increase even if it reports a net loss.
- Which of the following statements is false? A balance sheet reports a company's cash balance at a specific date. An income statement reports the amounts of revenue and expense on an accrual basis, not the amount of cash received from revenues or paid for expenses. A statement of retained earnings reports the amount of cash received from operating activities and the amount of cash paid for dividends. A statement of cash flows explains the changes in cash from operating, investing, and financing activities.If a company uses accrual-basis accounting O transactions are recorded in the period they occur rather than in the period in which cash is paid or received. net income is calculated by matching cash outflows against cash inflows. O cash must be received before revenue is recognized. O the ledger accounts must be adjusted to reflect a cash basis of accounting before financial statements are prepared under generally accepted accounting principles.Which of the following sentences regarding the statement of cash flows is false?a. The statement of cash flows describes the company’s cash receipts and cash paymentsfor a period of time.b. The statement of cash flows reconciles the beginning and ending cash balances shownon the balance sheet.c. The statement of cash flows reports cash flows in three categories: cash flows frombusiness activities, cash flows from investing activities, and cash flows from financingactivities.d. The statement of cash flows may be used by creditors to assess the creditworthiness of acompany.