Which one of the following is NOT an example of cash flow from operating activities? Select one: a. Cash payment to suppliers for goods and services b. Cash receipts from the sale of goods and the rendering of services  c. Cash payment of wages and salaries to employees d. Cash receipts from disposal of non-current assets

Q: An expense transaction is posted to accounts payable and is assigned to a vendor. In which account…

A: Step 1Understand the nature of the transaction. The transaction is an expense posted to accounts…

Q: 1. The statement of cash flows classifies cash receipts and cash payments into two categories:…

A: Cash flow statement is a statement showing the inflow and outflow of cash in an organization. It is…

Q: These would include transactions where cash is obtained from or repaid to owners and creditors…

A: The cash flow statement contains a summary of cash inflows/outflows from various activities such as…

Q: The assumption that requires that only those things that can be expressed in money are included in…

A: The generally  accepted principles of accounting are called concepts.The concept guide the…

Q: Can a company reply on net income as a valid measure of cash needed to pay fixed charges

A:

Q: 3) Wilson Company recognizes revenue in the period in which it records an asset for the related…

A: A) Economic entity: Accounting principle that treats the business as a separate entity from its…

Q: Non-business cash receipts should be included on a cash flow statement.   A.   True B.   False

A: Non business cash receipt means a receipt which is not related with business i.e it is related with…

Q: The objective of financial statements is: A. To summarize cash receipts and cash payments. B. To…

A: Financial statement is the set of records of financial activities of business that shows the…

Q: Which of the following is incorrect about the statement of cash flows?a. It is the third basic…

A: Financial statements comprises of income statement, statement of financial position and statement of…

Q: What is the meaning of the term revenue? Does the receiptof cash by a business indicate that revenue…

A: Realization principle: It can be defined as a concept that is based on the rule that the revenue…

Q: Which of the following are the suppliers of goods/services whose invoices have not yet been paid? a.…

A: Accounting can be done in  both cash and accrual method

Q: true or false A statement of cash flows prepared by the indirect method will disclose the cash…

A: Indirect method of cash flow statement involves a reconciliation from profit before tax, adjusting…

Q: The collection of cash from customers to which they owe to the entity from its past rendering of…

A: Lets understand the basics. When entity sale the goods on the credit then the buyer known as the…

Q: We can separate cash return on assets into: a. Cash flow to sales and return on assets. b. Profit…

A: Cash return on assets is: = Cash flows / Average Assets

Q: Under the cash basis of accounting, revenue is recorded A. when realized. B. when earned. C.…

A:

Q: Which is not undertaken by financial accounting? O a. Income statement O b. Customer data O C.…

A: Financial accounting deals with the economic transactions. In this, various statements are to be…

Q: A company may generate sufficient cash to pay its debts, it may use for other purposes refers to *…

A: The amount of cash generated by a company's normal business activities is known as cash flow, and it…

Q: Which of the following activity will NOT show up on cash flow from operating activities? O Purchase…

A: Cash flow statement records the inflow and outflow of cash. Cash flow statement includes cash flow…

Q: The revenue recognition principle  a. states that revenue is not recorded until the cash is received…

A: Cash basis of accounting states that revenues are recorded in books of account when cash is received…

Q: when does a company declare a cash devidends

A: Dividends are the considerations which are paid out of the profits by the entity for the amount…

Q: Revenues and expenses must be recorded in the accounting period in which they were earned or…

A: The income and expenses are recorded in the income statement to estimate the profitability of the…

Q: Subject : Accounting   The existence or occurrence assertion as related to cash is concerned with…

A: Assertion means a statement made by the Company's management regarding the completeness and accuracy…

Q: Financial statements are prepared

A: Accrual accounting refers to a method of accounting in which the transactions are recorded when it…

Q: Which of the following items is deducted from net income to arrive at cash flow from operations when…

A: The item that is deducted from net income to arrive at cash flow from operations when using the…

Q: In comparing accounting net income and operating cash fl ow, name two items you typically find in…

A: In this question, we are required to determine the items which are excluded in operating cash flow…

Q: at is the main difference between basic and completed accounting system? 2- What is the main…

A: What is the main difference between basic accounting system and complete accounting system What is…

Q: Which of the following is correct regarding cash basis of accounting? a. Sales include cash sales…

A: Under cash accounting, the incomes and expenses are recognised when they are received or paid and…

Q: 1. Realization of revenue occurs when a. the item is formally recorded and reported in the financial…

A: Realization Concept Realization concept in accounting, also known as revenue recognition principle,…

Q: Accounting If cash collected from customers is not yet recorded as revenue, what happens to it?

A: Sales of cash and the collection of accounts receivable are two ways to obtain money. The cash sales…

Q: Which of the following calculations of net income is correct?   Select one: Cash receipts…

A: The objective of the question is to identify the correct formula for calculating net income in…

Q: difference between the cash basis and accrual basis of accounting

A: In cash basis of accounting, receipts and payments are treated as income and expenses respectively.…

Q: Which of the following is a specific objective of financial reporting? a. provide information…

A: Financial Reporting - Financial reporting includes reporting on the income statement, Statement of…

Q: A reader of a statement of cash flows wishes to analyze the major classes of gross cash receipts and…

A: Question: A reader of a statement of cash flows wishes to analyze the major classes of gross cash…

Q: Which of the following would be subtracted from net income when using the indirect method to derive…

A: The cash flow from operating activities can be computed either directly or indirectly.  The indirect…

Q: Why might the revenue and cost figures shown on a standard income statement not be representative of…

A: The revenue and cost figures shown on a standard income statement are based on the accrual…

Q: 3. Which of the following is inappropriate aggregation? A. Cash and cash equivalents (Cash on hand…

A: Ans. D  Provisions (Liability from pending litigation and purchase

Q: Differentiate the cash basis of accounting from the accrual basis of accounting.

A: Difference between cash basis and accrual basis: Cash basis accounting:  Under this method, income…

Q: What is the difference between ‘Cash’ basis and ‘Accrual’ basis of accounting.

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Porite Company recognizes revenue in the period in which it records an asset for the related account…

A: Here the company records in the period in which it is earned rather than recording it when casflow…