Plz solve it within 40-50 mins I'll give you multiple upvote 16. Increases in current assets other than cash decrease cash, whereas decreases in theseaccounts increase cash.17. A simple rule to track how changes in assets and liabilities affect cash flow is that ifsomething we own goes up, our cash goes up and vice-versa and if something we owegoes up, our cash goes down and vice-versa.18. Financing activities include raising cash by issuing short-term debt, long-term debt, orstock.19. In terms of how it's used, FCF is the cash flow available for distribution to thecompany's equity investors after the company has made all investments necessary tosustain ongoing operations.20. In terms of how it's generated, FCF is equal to after-tax operating profit minus theamount of new expenditures necessary to sustain the business.21. A useful rule of thumb is that if an asset earns interest, it should be classified as anTrue / FalseTrue / FalseTrue / FalseTrue / FalseTrue / FalseTrue / Falseoperating asset.22. Investors scrutinize net income very carefully as it reflects the true performance of acompany's operations or the effectiveness of its managers.23. If an asset or a liability is discretionary, i.e., not a natural consequence of the company'soperations, then the item is an operating asset or liability.24. Highly leveraged firms have higher RNOA than firms with lower leverage.True / FalseTrue / FalseTrue / False25. Repurchasing shares near year-end will increase a firm's return on equity (ROE).True / False

Hi student Since there are multiple subparts, we will answer only first three subparts.

16. Increases in current assets other than cash decrease cash, whereas decreases in these accounts increase cash. True / False 17. A simple rule to track how changes in assets and liabilities affect cash flow is that if something we own goes up, our cash goes up and vice-versa and if something we owe goes up, our cash goes down and vice-versa. 18. Financing activities include raising cash by issuing short-term debt, long-term debt, or stock. In torms of how its used ECE is the cosh flow ovoilobla for distribution to the True / False True / False 10

16. Increases in current assets other than cash decrease cash, whereas decreases in these accounts increase cash. True / False 17. A simple rule to track how changes in assets and liabilities affect cash flow is that if something we own goes up, our cash goes up and vice-versa and if something we owe goes up, our cash goes down and vice-versa. 18. Financing activities include raising cash by issuing short-term debt, long-term debt, or stock. In torms of how its used ECE is the cosh flow ovoilobla for distribution to the True / False True / False 10

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 5MCQ

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Similar questions

What is the effect on cash when current liabilities decrease? A. Cash increases by the same amount. B. Cash decreases by the same amount. C. Cash decreases by twice as much. D. Cash does not change.
What is the effect on cash when current noncash operating assets increase? A. Cash increases by the same amount. B. Cash decreases by the same amount. C. Cash decreases by twice as much. D. Cash does not change.
What is the effect on cash when current noncash operating assets decrease? A. Cash increases by the same amount. B. Cash decreases by the same amount. C. Cash decreases by twice as much. D. Cash does not change.
Which of the following represents a source of cash in the investing section? A. sale of investments B. depreciation expense C. decrease in accounts receivable D. decrease in bonds payable
Which of the following would be considered a cash outflow for investing activities? a. cash paid to purchase product for inventory b. cash paid to reacquire common stock c. cash paid to repay debt d. cash paid to purchase equipment
Note payments reduce cash and are related to long-term debt. Do these facts automatically lead to their inclusion as elements of the financing section of the statement of cash flows? Explain.
Ma3. Which of the following is not a correct categorization of a cash inflow/outflow on the statement of cash flows under the indirect method? a. Payment of dividend = financing, decrease b. Increase in salaries payable = operating, increase c. Repayment of principal on bonds payable = financing, d. decrease Loss on sale of equipment = investing, increase
5. Using the following answer keys, you are to identify in which activity each of the transactions is classified and its effect on cash flows. Cash Flow Classification...using the capital letter only: O...Operating Activity I...Investing Activity F...Financing Activity OI...Operating and Investing Activity N...Noncash Transaction Effect on Cash Flows...using the capital letter only: I...Increase D...Decrease N...No Effect Transaction Cash Flow Classification Effect on Cash Flows Paid a cash dividend. Decreased accounts receivable. Increased inventory. Retired long-term debt with cash. Sold long-term securities at a loss. Issued stock for equipment. Decreased prepaid insurance. Purchased treasury stock with cash. Retired a fully depreciated truck (no gain or loss). Transferred cash to money market account.
True or false, the financing activities section of the statement of cash flows reflects the cash flows that affect current assets and liabilities? True or false, buying property, plant and equipment would be considered a cash outflow from financing? True or false, the financing section of the statement of cash flows reflects transactions in the equity accounts and the long-term liability accounts?
How do Cramer’s accrued liabilities affect the company’s statement of cash flows for2018?a. They increase cash used by financing activities.b. They increase cash provided by operating activities.c. They increase cash used by investing activities.d. They don’t because the accrued liabilities are not yet paid
True or false? the statement of cash flows is thr addition of cash flows from operations, investing, and financing. *** addition is what throws me off?
Which of the following activities does not increase cash? Multiple Choice Increasing current liabilities (getting a 90-day loan). Decreasing current assets other than cash (selling some inventory for cash). Increasing long-term debt (borrowing long-term). Increasing equity (selling some stock). Increasing fixed assets (purchasing property).