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Directions: Read each sentence carefully and detemine whether the statement is TRUE or FALSE. _ 1. Firancing activities generally result fromacquisition and disposal of non-aument assets. 2. The IAS 7 (IASB, 2001) ercourages the use of the indirect method overthe direct method. _ 3. The direct method or reconciliation method reports cash receipts and cash disbursements from operating activities. 4 The first steninthe penaration of the statement of cash flows is to detemine enet cash

Directions: Read each sentence carefully and detemine whether the statement is TRUE or FALSE. _ 1. Firancing activities generally result fromacquisition and disposal of non-aument assets. 2. The IAS 7 (IASB, 2001) ercourages the use of the indirect method overthe direct method. _ 3. The direct method or reconciliation method reports cash receipts and cash disbursements from operating activities. 4 The first steninthe penaration of the statement of cash flows is to detemine enet cash

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Directions: Read each sentence carefully and detemine whether the statement is TRUE or FALSE. _ 1. Firancing activities generally result fromacquisition and disposal of non-aument assets. 2. The IAS 7 (IASB, 2001) encourages the use of the indirect method overthe direct method. _ 3. The direct method or reconciliation method reports cash receipts and cash disbursements from operating activities. _ 4. The first stepinthe preparation of the statement of cash flows is to detemine the net cash flow from operating activities. _ 5. The primary purpose of the statement of cash flows is to provide cash-hasis information about the company's operating, investing, and financing activities. - 6. Paying dividends to investors creates a cash outflow from financing activities. - 7. Selling a piece of equipment below cost is an example of investing activity. 8.The purchase of land is classified in the statement of cash flows of operating activities. - 9.The statement of cash flow is divided into three required categories: operating, investing, and financing. 10. There is an outflow of funds in depreciation.
Transcribed Image Text:Directions: Read each sentence carefully and detemine whether the statement is TRUE or FALSE. _ 1. Firancing activities generally result fromacquisition and disposal of non-aument assets. 2. The IAS 7 (IASB, 2001) encourages the use of the indirect method overthe direct method. _ 3. The direct method or reconciliation method reports cash receipts and cash disbursements from operating activities. _ 4. The first stepinthe preparation of the statement of cash flows is to detemine the net cash flow from operating activities. _ 5. The primary purpose of the statement of cash flows is to provide cash-hasis information about the company's operating, investing, and financing activities. - 6. Paying dividends to investors creates a cash outflow from financing activities. - 7. Selling a piece of equipment below cost is an example of investing activity. 8.The purchase of land is classified in the statement of cash flows of operating activities. - 9.The statement of cash flow is divided into three required categories: operating, investing, and financing. 10. There is an outflow of funds in depreciation.
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