FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Which of the following statements accurately describes the statement of cash flows ?
It indicates when long-term debt will mature.
It shows the relative proportion of debt and assets.
It is the link between net income and earnings per share.
It is the link between the accrual-based income statement and the cash reported on the balance sheet .
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- Which of the following best describes the information reported in the income statement? Multiple Choice The current resources available to pay current obligations. The portion of profits paid in cash to stockholders. The extent to which cash inflows exceed cash outflows. The amount recognized from providing goods and services to customers compared to the cost of doing so.arrow_forwardWhich of the following is NOT a section on the cash flow statement? O a. Investing activities O b. Financing activities O c. Income generating activities O d. Operating activitiesarrow_forwardIdentify 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_forward
- Classifying 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_forwardWhich of the following is included on the statement of cash flows? a.Cash flows from (used for) investing activities b.Changes in retained earnings c.Total changes in stockholders' equity d.Total assetsarrow_forwardWhich 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_forward
- On 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_forwardContrast the aims of the income statement, the balance sheet, and the cash flow statement;arrow_forwardA measure that helps estimate the amount and timing of cash flows from operating activities is the cash flow on total assets ratio. True or False True Falsearrow_forward
- Which of the following is not classified among the financing activities in a statement of cash flows? a Long-term borrowing. b Payment of dividends to stockholders. c Short-term borrowing. d Payment of interest to creditors.arrow_forwardHow could (accurate) balance sheet and incomestatement information be used, along with otherinformation, to make a statement of cash flows?What is the primary purpose of this statement?arrow_forwardWhat are the differences between cash flows from operating activities and the elements of an income statement?arrow_forward
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