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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Textbook Question
Chapter 21, Problem 21.7DMP
Research Case 21–9
FASB codification; locate and extract relevant information and cite authoritative support for a financial reporting issue; cash flow classification
• LO21–4 through LO21–6
“This one’s got me stumped,” you say to no one in particular. “First day on the job; I’d better get it right.” It’s the classification of notes payable in the statement of
Required:
- 1. Obtain the relevant authoritative literature on cash flow classification using the FASB Accounting Standards Codification. You might gain access at the FASB website (www.fasb.org). What is the specific citation that specifies the classification of notes payable to suppliers?
- 2. Is accounting the same as for notes payable to banks? Explain.
- 3. Is accounting the same for both short-term and long-term notes payable to suppliers?
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What is a major objective of financial reporting?
Group of answer choices
To provide information that excludes claims to the resources.
To provide information that clearly portrays nonfinancial transactions.
To provide information that is useful to assess the amounts, timing, and uncertainty of prospective cash receipts.
To provide information that is useful to management in making decisions.
[Question 1 Cash management involves ___________________________.
Select one:
A. optimizing the collections and disbursements of cash
B. reconciling a company's book balance with its bank balance
C. determining the optimal level of liquidity that should be maintained
D. maximizing the income earned on cash reserves
Question two Which of the following statements is CORRECT?Select one:A. Collection float refers to an immediate increment in a firm's available balance when a check is received.B. The basic cost of collection float to the firm is the opportunity cost of not being able to use the cash.C. Instantaneous electronic funds transfer would only eliminate all types of float if the transaction occurs during normal business hours.D. Float management only involves controlling a company's collection of cash.
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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