are payments and receipts of interest classified as operating activities rather than as financing or investing activitie

Q: Distinguish between operating, investing, and financing activities, and describe how noncash…

A: CFS: It illustrates how the balance sheet and revenue adjustments impact cash and cash equal and…

Q: Which statement of financial position accounts are most affected by financing activities?   a.…

A: Changes in non current assets are reflected in cash flow from investing activities Changes in non…

Q: which of the anwsers are operating activities, financing activities, and investing activites for the…

A: In the cash flow statement there are main three segment are there.  The details are given below…

Q: Why is it necessary to make a distinction between Capital and Revenue Receipts and Capital and…

A: Capital receipts: These receipts are income that is earned from the investment and financing…

Q: is A written promise to pay the supplies an asset capital so on? is Fax Machine an asset capital so…

A: The answer is stated below:             Note: Answering the first three subparts as there are…

Q: Which of the following should be classified as financial instrument? Inventories C. Patents B.…

A: IAS 32 defines financial instrument as a "  contract that gives rise to a financial asset of one…

Q: Statement I: Users of the funds from finanical institutions and markets have the obligation to…

A: Financial institutions are organizations which are engaged in creating loans, accepting deposits.…

Q: Is the matching concept related to (a) the cash basis of accounting or (b) the accrual basis of…

A: Matching concept: Under matching concept the expenses and revenues are recorded in books of accounts…

Q: On account of monetary undertakings, the income coming about because of interest and profit…

A: Cash flow statement is the summary showing the receipts and payments of cash and cash equivalents in…

Q: In contrast with cash basis accounting, what is accrual accounting? Explain

A: The question is based on the concept of Financial Accounting.

Q: What is the difference between cash basis accounting and accrual basis accounting?

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: What is the difference between the cash basis and the accrual basis of accounting?

A: The accounting is a process to identify the business transactions, record the transactions and…

Q: Would a sale of equipment for cash be considered a financing activity or an investing activity? Why?

A: Definition:   Investing cash flow: The amount of cash disbursed or received in investing activity in…

Q: Investments in debt instruments are financial assets because they are   A. Equity instruments of…

A: Solution: Investments in debt instruments are financial assets because they are "Contractual rights…

Q: Why is the accrual basis of accounting generally preferred over the cash basis?

A: Accrual accounting aims to record the impacts of accounting events in the period when such events…

Q: financial assertion

A: Financial assertions are statements made by management in an an assertive way regarding the items in…

Q: Under U.S. GAAP, the statement of cash flows classifies cash expenditures for interest expense as an…

A: (U.S. GAAP) GENERALLY ACCEPTED ACCOUNTING PRINCIPLES ARE COLLECTION OF THE ACCOUNTING RULES AND…

Q: The acquisition of assets by issuing securities would be classified as an operating activity. an…

A: Issuing securities for the acquisition of assets doesn't involve any cash flows.

Q: Why is interest paid on amounts borrowed from banks and other lenders considered to be anoperating…

A: Cash Flow Statement: Cash Flow Statement is a fundamental financial statement that renders valuable…

Q: Why are the rules of debit and credit same for both liability and capital?

A:

Q: Is accrued interest an asset, liability or owner's equity?

A: Accrued interest refers to the amount of interest that is earned or incurred till the reporting…

Q: investments in debt instruments are financial asset

A: First option is wrong because debt instruments are not equity instruments. Second option is wrong…

Q: What is accrual vs cash basis accounting. Explain with examples?

A: Under accrual basis of accounting, transactions are recorded & recognized as and when they…

Q: What is a financial assets held for trading?It is measurement still applicable? explain

A: Meaning of Financial assets held for trading:  A financial asset is held for trading if the entity…

Q: What is accural vs cash basis accounting. Explain with examples?

A: Cash Accounting: A form of accounting in which receipts are reported during the period in which they…

Q: Why are income statements and cash flow statements both valuable to investors? Analyze the income…

A: This question explains about operational operations, investment activities, and financing activities…

Q: Under accrual accounting, which of the following is an appropriate accounting policy regarding…

A: Accrual basis: It is one of the methods of basis of accounting that records the transactions basing…

Q: Why aren’t transactions involving accounts payable considered to be financing activities?

A: Answer: Accounts payable is current liability which is used in computing working capital, excess of…

Q: What is the importance of Statement of Financial Position?

A: A statement of financial position also known as a balance sheet, is a part of the financial…

Q: Why are payments received from customers in advance, for either services to be performed and/or for…

A: Advance payment received from the customer there are two reasons which are mentioned are as follows:…

Q: This refers to earnings derive from depositing or lending money, goods or credits. O Dividend income…

A: Lets understand all options. Dividend income is a income derived from the investing in any entity.…

Q: Which of the following cannot be treated as revenues for an entity? Cash sales OCredit sales…

A: Cash Sales - These are sales made against cash.  Credit Sales - It refers to a sale in which the…

Q: define accrual and cash basis accounting.

A: Answer: Accrual Accounting: In accrual basis accounting, revenues and expenses are recognized once…

Q: Why is an owner's valuation of a borrowing business excluded from stated net worth to arrive at…

A: When we  say 'net worth' of a business it is  Assets - Liabilities of business.…

Q: investments in equity instruments are financial assets because they are a) cash equivalents b)…

A: Financial assets are the assets that are derived from contractual claims. It is a more liquid asset…

Q: accrual vs cash basis accounting? Explain with e

A: Accounting is a medium of communication, like any language that we use. For example, two people can…

Q: The increase of acc. Receivable can be include in O Inflow in investing activities O Outflow in…

A: Cash flow statement means the statement which shows the cash flow in or out of business enterprises…

Q: Which of the following statements are true regarding financial instruments? (i)  Financial…

A: A primary instrument is a financial asset whose price is determined solely by its market value.…

Q: Identify transactions that are classified as investing activities.

A: Definition:   Statement of cash flows: This statement reports all the cash transactions which are…

Q: eposits held as compensating balances   a. if legally restricted and held against long-term credit…

A: Answer: Deposits held as compensating balances are the amount that are held by lender on account for…