FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Using the direct method of preparing the statement of cash flows , to determine the cash effects of operating activities, which of the following needs to be adjusted?
a. |
Equity as reported in the |
b. |
Long-term assets and liabilities from the balance sheet |
c. |
Net income |
d. |
Reported revenues and expenses |
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- 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 equipmentarrow_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_forwardOn a statement of cash flows , the net amount of cash provided by (or used for ) items that normally appear on the income statement are : Financing activities Investing activities Operating activitiesarrow_forward
- Which of the following describes the operating activities as shown in the statement of cash flows? a. Includes increases and decreases in long-term assets b. Includes transactions that primarily impact current assets and current liabilities c. Shows the beginning and ending balance of cash d. Includes transactions affecting the capitalization of the businessarrow_forwardwhat are the two methods to prepare cash flow statement? Discuss in detail how cash from operating activities is determined in both the methods. Describe the entire processarrow_forwardWhen using the indirect method of determining net cash flows from operating activities, how are revenues and expenses reported on the statement of cash flows if their cash effects are identical to the amounts reported in the income statement?arrow_forward
- sarrow_forwardIn 2018, Bax had revenues of 008.38M, cost of revenue of $173 50M, R&D expenses of $163 75M, and other expenses of $405 65M What is the net profe margin for the company? Ⓒa. (22.13%) Ob (12 13%) OC 44.35% Od 0122%3arrow_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
- Activity reported in the Financing Activities section of the statement of cash flows would include accounts classified as a.current assets and current liabilities. b.long-term assets and long-term liabilities. c.long-term liabilities and stockholders' equity. d.current liabilities and stockholders' equity.arrow_forwardDefine Net cash provided by operating activitiesarrow_forwardOn the statement of cash flows prepared by the indirect method, the Cash flows from operating activities section would include a.gains or losses on fixed assets b.payments for cash dividends c.receipts from the issuance of capital stock d.receipts from the sale of investmentsarrow_forward
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