The appropriate section in the statement of cash flows for reporting the purchase of equipment for cash is: Operating activities. Investing activities. Schedule of noncash investing or financing activity. Financing activities. This is not reported on the statement of cash flows.

The appropriate section in the statement of cash flows for reporting the purchase of equipment for cash is: Operating activities. Investing activities. Schedule of noncash investing or financing activity. Financing activities. This is not reported on the statement of cash flows.

Name: 7.The appropriate section in the statement of cash flows for reportin
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Description: 7.The appropriate section in the statement of cash flows for reporting the purchase of equipmentfor cash is:Operating activities.Investing activities.Schedule of noncash investing or financing activity.Financing activities.This is not reported on th

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles

Section: Chapter Questions

Problem 8.10E

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Read CA23-5 found in the end of chapter materials of Chapter 23 and answer the related questions. CA23-5. (Purpose and Elements of SCF) GAAP requires the statement of cash flows be presented when financial statements are prepared. Instructions (a) Explain the purposes of the statement of cash flows. (b) List and describe the three categories of activities that must be reported in the statement of cash flows. (c) Identify and describe the two methods that are allowed for reporting cash flows from operations. (d) Describe the financial statement presentation of noncash investing and financing transactions. Include in your description an example of a noncash investing and financing transaction.
2. To be reported as “cash and cash equivalent”, the cash and cash equivalent must be a. Unrestricted in use for current operations b. Available for the purchase of property, plant and equipment c. Set aside for the liquidation of long-term debt d. Deposited in the bank
Access the FASB Accounting Standards Codification at the FASB website ( asc.fasb.org ). Determine the specific citation for accounting for each of the following items: 1. Disclosure of interest and income taxes paid if the indirect method is used. 2. Primary objectives of a statement of cash flows. 3. Disclosure of noncash investing and financing activities.
19. The current assets section of the statement of financial position should include * b. patents. a. machinery. d. inventory c. goodwill. 20. Equity or debt securities held to finance future construction of additional plants should be classified on a balance sheet as * c. intangible assets. a. current assets. d. long-term investments b. property, plant, and equipment. 21. In a statement of cash flows, receipts from sales of property, plant, and equipment and other productive assets should generally be classified as cash inflows from * d. selling activities c. investing activities. a. operating activities. b. financing activities. 22. The statement of financial position * d. All of the choices are correct regarding the statement of financial position. c. Uses fair value for most assets and liabilities. b. Makes very limited use of judgments and estimates. a. Omits many items that are of financial value. 23. The basis for classifying assets as current or noncurrent is…
18. Which one of the following category Cash in hand belong to? a. Non-current asset b. Fictitious asset c. Intangible asset d. Current asset
17.These are conditions required by IFRS 9 for notes and accounts receivable to be measured at amortized cost.I. The financial asset is held within the enterprise's business model whose objective is for trading purposes.II. The financial asset is held within the enterprise's business model whose objective is to hold assets in order to collect contractual cash flows.III. The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest. a. I and II only b. II and III only c. I and III only d. I, II and III
Which of the following statements about cash received prior to the recognition of revenue in the fi nancial statements is most accurate? Th e cash is recorded as: A . deferred revenue, an asset
Under ASPE the receipt of interest on loans would be reported on a statement of cash flows under www.OA. investing activities OB. operating activities OC. financing activities OD. no activities because interest received on loans would not be reported on a statement of cash flows
In an statement of cash flows what is included in the operating activities section? In the investment section? In the financial activities section? One or two paragraph minimum per section CH 15
Explain how each of the following items is reported in a complete set of financial statements, including the accompanying notes. (In one or more cases, the item may not appear in the financial statements.) The answer to the first item is provided as an example. a. Cash equivalents. b. Cash in a special fund being accumulated as legally required for the purpose of retiring a specific long-term liability. c. Compensating balances. d. The amount by which the current market value of securities classified as available for sale exceeds their cost. e. The Allowance for Doubtful Accounts. f. The accounts receivable turnover rate. g. Realized gains and losses on investments sold during the period. h. Proceeds from converting cash equivalents into cash. i. Proceeds from converting investments in marketable securities into cash. Example: a. Cash equivalents normally are not shown separately in financial statements. Rather, they are combined with other types of cash and reported under the caption…
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23. How should significant noncash transactions be reported in the statement of cash flows? They should be incorporated in the statement of cash flows in a section labeled, "Significant Noncash Transactions." They should be handled in a manner consistent with the transactions that affect cash flows. These noncash transactions are not to be incorporated in the statement of cash flows. They may be summarized in a separate schedule at the bottom of the statement or appear in a separate supplementary schedule to the financials. Such transactions should be incorporated in the section (operating, financing, or investing) that is most representative of the major component of the transaction.