3 purchase of plant asset show asO a cash inflow as an operating activitiesO b. cash outflow as an investing activitiesOc. cash inflow as an investing activitiesO d. cash outflow as a financing a activities

Statement of cash flows is one of financial statement being prepared in business. It shows all cash…

purchase of plant asset show as O a Ob cash inflow as an operating activities cash outflow as an investing activities O cash inflow as an investing activities Od cash outflow as a financing activities

purchase of plant asset show as O a Ob cash inflow as an operating activities cash outflow as an investing activities O cash inflow as an investing activities Od cash outflow as a financing activities

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 7MC: Depreciation of a plant asset is the process of ________. A. asset valuation for statement of...

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purchase of plant asset show as
O a cash inflow as an operating activities
O b. cash outflow as an investing activities
Oc. cash inflow as an investing activities
O d. cash outflow as a financing a activities

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Depreciation of a plant asset is the process of ________. A. asset valuation for statement of financial position purposes B. allocation of the assets cost to the periods of use C. fund accumulation for the replacement of the asset D. asset valuation based on current replacement cost data
Identify an example of a non-current asset. O a. Machinery O b. Bank overdraft O c. Inventory O d. Loan
Salvage value of a piece of equipment would show on the cash flow diagram as what? Select one: a. inflow b. outflow C. revenue d. expense
Quèstion 8 Investing activities include the (select the best answer): O A. Sale of plant assets. O B. Purchase of plant assets. OC. Sale of short-term investments other than cash equivalents. O D. All answers are correct.
Expenditures to acquire long-term assets are most likely classified as a. Personnel Services b. Maintenance and Other Operating Expenses c. Financial Expenses d. Capital Outlays
Valuing assets at the amount of cash or equivalents paid or the fair value of the consideration given to acquire them at the time of acquisition most closely describes which measurement of fi nancial statement elements? A . Current cost
According to the acquired assets should be recorded at the amount actually paid rather than at the estimated market value. O A. monetary unit assumption O B. going concern assumption O C. cost principle D. economic entity concept
Identify the cash flow series associated with production or service over thelife of the asset?
Which of the following accounts would be classified as a fixed (property, plant and equipment asset)? Group of answer choices equipment accounts receivable cash accounts payable
Managing current assets involves a trade-off between two types of costs. These costs are: Group of answer choices cash-out costs and stock-out costs. shortage costs and cash-out costs. carrying costs and shortage costs. carrying costs and opportunity costs.
Return total assets
The balance in the Accumulated Depreciation account represents a. The amount charged to expense in the current period.b. A contra expense account.c. A cash fund to be used to replace plant assets.d. The amount charged to depreciation expense since the acquisition of the plant asset.