FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Which of the following sections from the statement of
affect current assets and current liabilities on the
A) The investing section
B) The financing section
C) The operating section
D) The noncash investing and financing section
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- 7. Interest received by a finance company is classified under which kind of activity while preparing a Cash Flow Statement ? (a) Cash Flow from Operating Activities (b) Investing Activities (c) Financing Activities (d) Cash Equivalentarrow_forwardT/F: The statement of cash flows reports the cash inflows and outflows from operating, investing, and financing activities.arrow_forwardWhich of these cash flows would be classified under cash flows from financing activities? i) Cash received from sale of goodsii) Cash paid for repayment of loaniii) Cash paid for dividendsiv) Cash paid for purchase of landv) Cash received from issue of shares i, ii, and iii ii, iv and iii ii, iii and v i, iv and varrow_forward
- The Indirect and Direct methods of reporting cash flows differ in regard to their presentation in the statement of cash flows in which of the following activity sections A) Investing B) Operating C) Adjusting D) Financingarrow_forward14. Which of the following would be classified as a financing activity on a statement of cash flows? Sale of a loan receivable Payment of interest to a creditor Payment of a bond payable Declaration and distribution of a stock dividendarrow_forwardWhich of the following sections from the statement of cash flows includes activities that affect current assets and current liabilities on the balance sheet? a. Investing b. None-cash investing and financing. c. Operating d. Financingarrow_forward
- On a statement of cash flows , the net amount of cash provided by (or used for ) items that normally appear on the income statement are : Financing activities Investing activities Operating activitiesarrow_forwardWhich of the following describes the operating activities as shown in the statement of cash flows? a. Includes increases and decreases in long-term assets b. Includes transactions that primarily impact current assets and current liabilities c. Shows the beginning and ending balance of cash d. Includes transactions affecting the capitalization of the businessarrow_forwardIf a company purchased avalaible for sale securities with cash, this would be reported on the statement of cash flows as? Select one: a. Financing Activities cash outflow b. Investing Activities cash outflow c. Financing Activities cash inflow d. Operating activities cash outflowarrow_forward
- Classifying Items in the Statement of Cash Flows The following items are commonly reported in a statement of cash flows (indirect method presentation). For each item 1 through 20, determine (a) in which section the item is presented (operating, investing, or financing) and (b) whether the associated dollar amount is added or subtracted in the statement. (a) (b) 1. Payments of short-term debt. Answer Answer 2. Repurchases of common stock. Answer Answer 3. Purchases of property and equipment. Answer Answer 4. Sale of investments classified as long-term. Answer Answer 5. Proceeds from the issuance of common stock. Answer Answer 6. Increase in prepaid expenses and other current assets. Answer Answer 7. Acquisition for cash of a competitor. Answer Answer 8. Increase in current income tax payable. Answer Answer 9. Decrease in accounts payable. Answer Answer 10. Dividends paid to stockholders. Answer Answer 11.…arrow_forwardWhich of the following is included on the statement of cash flows? a.Cash flows from (used for) investing activities b.Changes in retained earnings c.Total changes in stockholders' equity d.Total assetsarrow_forwardWhat types of transactions are reported in the non-cash investing and financing activities section of the statement of cash flows?arrow_forward
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