Examine the business activity and decide for its classification from the choices below. Also, indicate if it is an inflow (-) or outflow (+).   Activity: Pay employee salaries   Choices:   (O) Cash flow from operating activity   (I) Cash flow from investing activity   (F) Cash flow from financing activity   (NC) Non-cash investing/financing activity

Q: in the accounting records? a. Equipment is purchased on account. b. An employee is terminated. c. A…

A: Internal users of financial statements are those users who are managers, employees and other…

Q: Prepare a two-column analysis that illustrates steps management might take to improve the…

A: Steps  Impact on Financial Statements Delay cash payment of expenses at the year-end (assume…

Q: Indicate whether the following statements are (True) or (False) and correct the false statements:…

A: Comment- Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…

Q: Which financial statement shows the financial performance of the company on a cash basis?A. balance…

A: Financial statements are those statement or reports that are prepared at the end of accounting…

Q: he economic resources that a business owns and expects to be useful to deliver its purpose are known…

A: An asset is a resource with economic value that an individual, corporation, or enterprise owns with…

Q: The statement of cash flows is:   a.A financial statement that lists the types and amounts of…

A: Financial statements are the statements that reports the profitability, cash position and the…

Q: Match each transaction to one of the following activities of an organization: financing activity(F),…

A: Three major categories of an organization’s business activities are as follows:  Financing,…

Q: Distinguish between cash-basis accounting and accrualbasisaccounting. Why is accrual-basis…

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

Q: Classify the following cash flows as either operating (O), investing (I), or financing (F)…

A: Statement of cash flows:

Q: Why do you think investors and creditors often focus on the Statement of Cash Flows when making…

A: GAAP:- Generally Accepted Accounting Principles is also called as GAAP  in short form. These…

Q: May I have the statement of cash flow for the business?

A: In the context of the given question, we need to prepare the flow of cash for the business.  The…

Q: Which of the following is not a question that can be answered with the cash flow statement? A. How…

A: Cash Flow Statement is one of the Financial Statements which shows the movement of cash in the…

Q: Classify each item by type of business activity- operating, investing, or financing. Also indicate…

A: Statement of cash flow (CFS) refers to a financial statement of the company which shows the flows of…

Q: When a business provides services for cash, what is the effect on the accounting equation are…

A: When a business provides services for cash, cash is increased and revenues are increased. Revenues…

Q: A financial statement to show what a business owns and owes at a particular ?point in time The bank…

A: Financial records and financial statements preparation is important output of financial accounting…

Q: Which is not undertaken by financial accounting? O a. Income statement O b. Customer data O C.…

A: Financial accounting deals with the economic transactions. In this, various statements are to be…

Q: When a business provides services for cash, which elements of the accounting equation are affected?…

A: The assets are equal to the sum of liabilities and equity during an accounting period is termed as…

Q: t, Statement of Owner’s Equity, Balance Sheet, and Statement of Cash Flows) are helpful to the…

A: The most significant components of financial statements are the income statement, balance sheet, and…

Q: Fill in the blank with these terms : long term, expense, balance sheet, Stockholder's equity,…

A: Solution: 1. Revenues are monies an organization received in exchange for goods and Service it…

Q: Distinguish between cash-basis accounting and accrual basis accounting. Why is accrual-basis…

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

Q: For money to accrue to a business, it needs to: a.Have been earned by the business b.Have been…

A: As per revenue recognition principles, if a company follows accrual method of accounting then…

Q: Which of the following is given as a means to search for unreported income or hidden assets: Group…

A: In accounting there is a branch called forensic accounting. It involves use of accounting knowledge…

Q: Instructions: Classify each transaction whether they are operating, financing or investing. After…

A: Transactions will be classified under 3 major heads, Operating activity, Investing activity and…

Q: Operating cash flows would include which of the following? a. Repayment of borrowed money. b.…

A:

Q: Assets and liablities are classified on the balance sheet into correct and long-term categories in…

A: A balance sheet is a statement that shows the financial positions of the business organization. The…

Q: Profit is the difference between? a. Assets and liabilities b. Assets and equities c. The assets…

A: Assets, liabilities, equity, incomes and expenses are important terms that are being used in…

Q: The......of a business is the amount of income A-Revenue B-venture C-assest D-fund

A: A business is described as an organization or enterprising entity engaged in commercial,…

Q: Financial statements are prepared

A: Accrual accounting refers to a method of accounting in which the transactions are recorded when it…

Q: Instructions: Classify each transaction whether they are operating, financing or investing. After…

A: Statement of cash flows forms a part of financial statement of the companies and is prepared with a…

Q: Which statement is true regarding the cash basis of accounting? a. Revenues are reported in the…

A: Cash basis refers to a major accounting method that recognizes revenues and expenses at the time…

Q: Depreciation is considered as accounting policy and operational expense for the accounting period.…

A:

Q: . The amount a company expects to collect from customers appears on thea. balance sheet in the…

A: Balance sheet: This financial statement reports a company’s resources (assets) and claims of…

Q: dentify whether the activity is an operating, investing, or a financing activity, and if it is a…

A: Operating activities are those activities which relates to providing the goods and services to…

Q: Prepare a balance sheet in a narrative format based on the following list of information, as shown…

A: Balance sheet: Balance Sheet is one of the financial statements that summarize the assets, the…

Q: working capital is defined as a. total current assets minus total current liabilities b.…

A: For every day business and routine activities of business, business needs working capital. It means…

Q: -Interest paid by an invesment company will come under which kind of activity while preparing cash…

A: Cash flow statement is a part of financial statement, which summarizes the cash & cash…

Q: The users of financial information can understand the strength and weakness of the business concern…

A: Financial statements of an entity includes; Balance sheet, Income statement, Cash flow statement.

Q: Directions: Choose the term being described from the given choices below. only the letters of your…

A: Introduction: Balance sheet: All Assets and liabilities are shown in Balance sheet. It tells the net…

Q: Which financial statement shows the financial position of the company?A. balance sheetB. statement…

A: The information contained in a company's financial statements serves as the basis for corporate…

Q: why is there a need for a statement of cash flows?

A: There is a need for a statement of cash flows,even if income statement shows profit,due to the…

Q: Janzen Company recorded employee salaries earned but not yet paid. Which of the following represents…

A: An accounting equation refers to a mathematical represents tion of the transaction. It indicates…

Q: Indicate the section where transactions would appear on the statement of cash flows.O. Cash flows…

A: The question is related to identifying of the activity in Cash Flow Statement.

Q: . Which of the following would be classified as a cash outflow for investing activities? payment of…

A: Comments; Multiple Questions Asked.

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is