8. In which part of the cash flow statement will you show the repayment of long-term loans?O A) Cash Flow from Operating Activities.O B) Cash Flow from Investing Activities.O C) Cash Flow from Financing Activities.O D) None of the above.9. Which of the following factors would explain a increase in retained earnings? *O A) Net IncomeO B) Net Loss.O C) Investment on StocksO D) None of the above.10. The income statement's primary purpose is to show the of abusiness.* O 4) ENG

As per Bartleby guidelines, "Since you have asked multiple question, we will solve the first…

8. In which part of the cash flow statement will you show the repayment of long- term loans? O A) Cash Flow from Operating Activities. O B) Cash Flow from Investing Activities. O C) Cash Flow from Financing Activities. O D) None of the above,

8. In which part of the cash flow statement will you show the repayment of long- term loans? O A) Cash Flow from Operating Activities. O B) Cash Flow from Investing Activities. O C) Cash Flow from Financing Activities. O D) None of the above,

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 13MCQ

See similar textbooks

Similar questions

Which of the following would be included in the financing section? A. loss on sale of investments B. depreciation expense C. increase in notes receivable D. decrease in notes payable
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.
Sources of cash include a. profitable operations. b. the issuance of long-term debt. c. the sale of long-term assets. d. the issuance of capital stock. e. All of these.
11In a cash flow statement, which one of the following would appear as an outflow of cash? Select one: a. An increase in debtors during the year. b. An increase creditor during the year. c. Depreciation charges on fixed assets. d. Loss on sale of a fixed asset. 12A credit balance on accruals account indicates? Select one: a. a liability and an expense owing. b. an asset and a prepayment of income. c. an asset and an accrual of income. d. a liability and an expense prepaid. 6ABC paid XYZ rent in advance for one year. By recording this payment ABC will reflect: Select one: a. An increase in assets and liabilities. b. An increase in assets and stockholder's equity. c. An increase in assets and decrease in liabilities. d. No change in total assets. 8Which of the following expenses will not be analyzed to administrative expenses in a published profit and loss account for a company? Select one: a. Bank charges and interest. b. Office expenses. c. General expenses. d. Managing Director…
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
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.
Which of the following represents a source of cash in the investing section?A. sale of investmentsB. depreciation expenseC. decrease in accounts receivableD. decrease in bonds payable
Which of the following statements is CORRECT? The statement of cash flows reflects cash flows from operations and from borrowings, but it does not reflect cash obtained by selling new common stock. The statement of cash flows shows how much the firm's cash and short-term liquid securities (or cash equivalents), increased or decreased during a given year. The statement of cash flows reflects cash flows from operations, but it does not reflect the effects of buying or selling fixed assets. The statement of cash flows shows where the firm's cash is located; indeed, it provides a listing of all banks and brokerage houses where cash is on deposit. The statement of cash flows reflects cash flows from continuing operations, but it does not reflect the effects of changes in working capital.
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, does the statement of cash flows explains the difference between net income and the change in the cash balance? True or false, investors and management use the statement of cash flows to evaluate a firm's profitability? True or false, the financing activities section of the statement of cash flows includes paying dividends and paying off loans?
Which section of the statement of cash flows shows cash inflows and outflows from the issue and repayment of loans? A. Fiancing B. Operating C. Investing D. None of the Above
Answer TRUE or False to the following statements/questions: A) Does the statement of cash flows explains the difference between net income and the change in the cash balance? B) Investors and management use the statement of cash flows to evaluate a firm's profitability? C) True or false, the financing activities section of the statement of cash flows includes paying dividends and paying off loans? D) The financing activities section of the statement of cash flows reflects the cash flows that affect current assets and liabilities? E) Buying property, plant and equipment would be considered a cash outflow from financing? F) The financing section of the statement of cash flows reflects transactions in the equity accounts and the long-term liability accounts? G) Suppose Auga Company Ltd just started business and was looking for additional capital in order to purchase a property to build their headquarters. If they found an investor who was willing to sell them land worth $500,000 in…