Intermediate Accounting, 10 Ed
10th Edition
ISBN: 9781260310177
Author: Mark W. Nelson, Wayne B. Thomas J. David Spiceland
Publisher: McGraw-Hill Education
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Question
Chapter 21, Problem 21.30E
To determine
Statement of
Generally Accepted Accounting Principle (GAAP): Generally Accepted Accounting Principle (GAAP) is a common set of accounting principles, standards, and procedures that the companies must follow at the time of preparation of the financial statements.
To Determine: The specific citation for the given items.
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Students have asked these similar questions
Intermediate Accounting 105
What is the purpose of a statement of cash flows? How does it differ from a balance sheet and an income statement?
Please provide GAAP concept and own explanation / example.
#203
How should significant noncash transactions be reported in the statement of cash flows according to FASB Statement No. 95?
Question 203 options:
a
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.
b
They should be handled in a manner consistent with the transactions that affect cash flows.
c
They should be incorporated in the statement of cash flows in a section labeled, "Significant Noncash Transactions."
d
Such transactions should be incorporated in the section (operating, financing, or investing) that is most representative of the major component of the transaction.
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.
Chapter 21 Solutions
Intermediate Accounting, 10 Ed
Ch. 21 - Effects of all cash flows affect the balances of...Ch. 21 - Prob. 21.2QCh. 21 - Prob. 21.3QCh. 21 - Prob. 21.4QCh. 21 - Prob. 21.5QCh. 21 - Prob. 21.6QCh. 21 - Prob. 21.7QCh. 21 - The sale of stock and the sale of bonds are...Ch. 21 - Does the statement of cash flows report only...Ch. 21 - Prob. 21.10Q
Ch. 21 - Perhaps the most noteworthy item reported on an...Ch. 21 - Prob. 21.12QCh. 21 - Given sales revenue of 200,000, how can it be...Ch. 21 - Prob. 21.14QCh. 21 - When determining the amount of cash paid for...Ch. 21 - Prob. 21.16QCh. 21 - When using the indirect method of determining net...Ch. 21 - Prob. 21.18QCh. 21 - Prob. 21.19QCh. 21 - Where can we find authoritative guidance for the...Ch. 21 - U.S. GAAP designates cash outflows for interest...Ch. 21 - Prob. 21.1BECh. 21 - Prob. 21.2BECh. 21 - Prob. 21.3BECh. 21 - Prob. 21.4BECh. 21 - Investing activities LO215 Carter Containers sold...Ch. 21 - Financing activities LO216 Refer to the situation...Ch. 21 - Prob. 21.11BECh. 21 - Prob. 21.12BECh. 21 - Classification of cash flows LO213 through LO216...Ch. 21 - Indirect method; reconciliation of net income to...Ch. 21 - Prob. 21.29ECh. 21 - Prob. 21.30ECh. 21 - Prob. 21.31ECh. 21 - Prob. 21.32ECh. 21 - Prob. 21.1PCh. 21 - Research Case 219 FASB codification; locate and...Ch. 21 - IFRS Case 2110 Statement of cash flows...
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Similar questions
- In addition to the three basic financial statements, which of the following is also a required financial statement? (C17L01) Select one a the Statement of Cash Flows Ob. the "Cash Reconciliation" the "Cash Budget" d. the Statement of Cash eflows and Outflowsarrow_forward2. Which of the following is an appropriate aggregation? A. Cash and cash equivalents (Cash in bank and sinking fund) B. Trade and other receivables (Accounts receivable and investment in bonds) C. Trade and other payables (Accounts payable and accruals) D. Provisions (Income tax payable and warranty liability)arrow_forwardWith regard to the definition of revenue given by IFRS 15, which of the following statements is true? a. Revenue includes cash received from borrowings b. Revenue may arise from either ordinary activities or extraordinary activities c. Revenue includes cash received from share issues d. Revenue arises from ordinary activities onlyarrow_forward
- Q-4 What are the major categories of depository institution assets and their approximate percentage contribution to total resources? What are the major categories of depository institution liabilities? What are the fundamental differences between them?arrow_forwardMuzna Salim As per the definition of revenue stated by IFRS15, which of the following statements is correct? Revenue includes cash received from share issues Revenue arises from ordinary activities only Revenue includes cash received from borrowings Revenue may arise from either ordinary activities or extraordinary activitiesarrow_forwardcontrast cash fl ow statements prepared under International Financial Reporting Standards(IFRS) and US generally accepted accounting principles (US GAAP);arrow_forward
- What guidance does the Codification provide on the classification of current liabilities? What guidance does the Codification provide concerning the format of accounting disclosures? What are the objectives related to the statement of cash flows?arrow_forwardQUESTION 4 Which of the following fund types does not report the payment of bond principal as an expenditure? a. Special revenue fund b. Enterprise fund c. Debt service fund d. General fundarrow_forwardClassifying 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. AnswerOperatingInvestingFinancing AnswerAddSubtract 2. Repurchases of common stock. AnswerOperatingInvestingFinancing AnswerAddSubtract 3. Purchases of property and equipment. AnswerOperatingInvestingFinancing AnswerAddSubtract 4. Sale of investments classified as long-term. AnswerOperatingInvestingFinancing AnswerAddSubtract 5. Proceeds from the issuance of common stock. AnswerOperatingInvestingFinancing AnswerAddSubtract 6. Increase in prepaid expenses and other current assets. AnswerOperatingInvestingFinancing AnswerAddSubtract 7. Acquisition for cash of a competitor.…arrow_forward
- 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.arrow_forwardQUESTION 30 Statement of Cash flows requires that cash receipts and payments should be analysed into three main categories. Under which category would you expect to find the cash proceeds from a share issue? a. Financing activities •b. Operating activities c. Investing activities d.Cash and cash equivalentsarrow_forward38Investing activities involvewhich of the following? a) borrowing and repaying of debt. b) sale of inventory. c) receipt of interest. d) investments in assets other than current assets.arrow_forward
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