Which of these transactions would not be part of the cash flows from the operating activities section of the statement of cash flows? a.Credit purchase of inventory b.Salary payments to employees c.Cash paid for purchase of equipment d.Sales of product, for cash

Which of these transactions would not be part of the cash flows from the operating activities section of the statement of cash flows? a.Credit purchase of inventory b.Salary payments to employees c.Cash paid for purchase of equipment d.Sales of product, for cash

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter16: Statement Of Cash Flows

Section: Chapter Questions

Problem 2MC: Which of these transactions would not be part of the cash flows from the operating activities...

See similar textbooks

Related questions

Q: Which of the following statements is false? A balance sheet reports a company's cash balance at a…

A: Answer : A statement of retained earnings reports the amount of cash received from operating…

Q: Which of the following transactions is a financing activity? Select one: a. Cash paid for purchase…

A: Statement of cash flows: It is a financial statement that shows the increase or decrease in the cash…

Q: Which one of the following statements is true about the statement of cash flows? A: It’s another…

A: There are some companies which are listed are mandatory to follow and prepare indirect method of…

Q: Which of the following would be classified as an operating activity on the statement of cash flows…

A: Cash flow from operating activities consists of cash inflows and cash outflows from day to day…

Q: Which of the following will NOT appear in the cash flows from operating activities?

A: Answer: Option e.

Q: Which of the following is true regarding unearned revenue? O When it is received, only the balance…

A: True regarding unearned revenue Let us understand accounting entry of unearned received and earned.…

Q: Finally indicate the effect of the transactions to cash flows. Transactions Activity Reason Effect…

A: CFS termed as Cash Flow Statement is the statement which shows the financial performance of the…

Q: Which of the following does not represent a cash flow relating to operating activities? a. Dividends…

A: Cash flows from operating activities is a part of a company's cash flow statement that explains the…

Q: The distinction between operating and nonoperating income relates to: Primary activities of the…

A: Operating Income: The term "operating income" refers to the money that remains after all operational…

Q: The time period, which elapses between the point at which cash is spent on the production of a…

A: The firm generally gets cash from own resources or from outside as a debt. The cash is used for 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: The accuracy of the statement of cash flows can be verified by computing the change in the balance…

A: The cash flow statement is an essential part of the financial statements of the organization. It is…

Q: Which of the following statements is false? (You may select more than one answer.)a. Purchasing a…

A: Cash Flow Statement: It is a financial statement prepared by a company to report their cash…

Q: When the indirect method is used to determine net cash provided by (used in) operating activities,…

A: Under the indirect method, the net cash flow from operating activities is calculated by adjusting…

Q: Which of the following will not be classified under operating activities in a cash flow statements?…

A: ""We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Which of the following returns is consistent with contractual cash flows that are solely payments of…

A: IFRS 9 provides guidance of SPPI. The SSPI test decides that whether financial instruments are…

Q: Which of the following should be subtracted from net income in computing net cash flows from…

A: Introduction: Statement of cash flows: All cash in and out flows are shown in statement of cash…

Q: What information would you find in a statement of cashflows that you would not be able to get from…

Q: The operating cycle is best described as the time between a.the formation of the company and the…

A: The amount of time a corporation spends between spending money on operational activities and…

Q: Using accrual accounting, when is revenue recognized? A. When cash transfers B. When the…

A: There are two type of accounting merhods used in business. One is cash basis of accounting and other…

Q: Determining the cash flows from operating activities generally requires analyzing each item on the…

A: Cash flow statement is a statement which is prepared to find out the cash comes in and goes out , by…

Q: Which of the following is not an operating activity shown on the Statement of Cash Flows? Cash…

A: Cash Flow statement is prepared to analyze the Cash Inflow and Outflow Activities.

Q: When equipment is sold for cash, the amount received is reflected as a cash a) inflow in the…

A: Cash flows from investing activities is a section in cash flow statement which shows all cash…

Q: If a company uses accrual-basis accounting O transactions are recorded in the period they occur…

A: The cash basis of accounting works on the method that only cash-related transactions are recorded,…

Q: Classifying Cash Flows Identify whether each of the following would be reported as an operating,…

A: Cash flow statement comprises of the following activities:- 1. Operating; 2. Investing and; 3.…

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

A: Solution Concept Cash flow statement is a financial statement that is prepared to present the cash…

Q: Which one of the following is NOT an example of cash flow from operating activities? Select one: a.…

Q: Which of the following shows how purchasing supplies for cash will affect a company's financial…

A: Financial statements are the final statements which are prepared at the end of the period in order…

Q: The statement of cash flows is designed to assist users inassessing each of the following, except:a.…

A: Cash flow Statement: It is prepared by the companies. It is a tool in the hands of users of…

Q: A firm's net cash flow from operating activities includes which of the following: Select one: A.…

A: Operating Activities: This activity is known as revenue-producing activities. Its is generally…

Q: The primary purpose of the statement of cash flows is to provide information about the investing…

A: Cash flow statement: It is one of the financial statements prepared at the end of a particular…

Q: Which of the following cash activities would be listed in the Investing Activities section of the…

A: The cash flow statement shows cash inflow & outflow of cash during the year. It has three…

Q: Which of the following should be subtracted from net income in computing net cash flows from…

Q: When completing the spreadsheet to prepare the statement of cash flows, a decrease in retained…

A: Statement of cash flows is one of the financial statement of business, which shows all cash inflows…

Q: Which of the following should be subtracted from net income in computing net cash flows from…

A: Statement of cash flows: It is a financial statement that shows the increase or decrease in the cash…

Q: Which of the statements is NOT TRUE about the Statement of Cash Flows? a) Collection of receivables…

A: A statement of cash flows or a cash flow statement is a financial statement that is to be prepared…

Q: Assume a company prepares the statement of cash flows using the indirect method. The company…

A: The cash flow statement is helpful for the stakeholders that they can identify the organization's…

Q: Which of the following shows how paying cash to purchase supplies will affect a company's financial…

A: Day to day transaction are the basis for the preparation of Company's Financial Statements. If a…

Q: The indirect method of presenting cash flows from operating activities begins with a listing of the…

A: The cash flow statement is helpful for the stakeholders that they can identify the organization's…

Q: Which of the following is not a use of the statement of cash flows? a.Helps creditors analyze the…

A: The cash flow statement is prepared to estimate the cash inflow or outflow from the business.

Q: Under the accrual basis of accounting: cash must be received before revenue is recognized. events…

A: Accrual system of accounting recognises revenue whenever it becomes due.

Q: A source of cash from operating activities is: Group of answer choices A)Proceeds from a loan.…

A: The correct option is : B)Collection of an account receivable.

Q: Which is NOT an example of a type of event that is not currently recognized in the financial…

A: Lets understand the basics. There are certain events which are not affecting financial statement…

Q: Statement of Cash , select the false statement a.The cash received from the sale of goods is a cash…

A: A statement of cash shows the different sources of cash (i.e. cash inflows) and the different uses…

Question

Which of these transactions would not be part of the cash flows from the operating activities section of the statement of cash flows?

a.Credit purchase of inventory

b.Salary payments to employees

c.Cash paid for purchase of equipment

d.Sales of product, for cash

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Which of the following sentences regarding the statement of cash flows is false? The statement of cash flows describes the companys cash receipts and cash payments for a period of time. The statement of cash flows reconciles the beginning and ending cash balances shown on the balance sheet. The statement of cash flows reports cash flows in three categories: cash flows from business activities, cash flows from investing activities, and cash flows from financing activities. The statement of cash flows may be used by creditors to asses the creditworthiness of a company.
Which of the following would be classified as a cash outflow from an operating activity? a. Purchase of an investment b. Payment of dividends c. Purchase of equipment d. Payment of goods purchased from suppliers
Which of these transactions would be part of the financing section? A. inventory purchased for cash B. sales of product, for cash C. cash paid for purchase of equipment D. dividend payments to shareholders, paid in cash
In which section of the statement of cash flows would each of the following transactions be included? For each, identify the appropriate section of the statement of cash flows as operating (O), investing (I), financing (F), or none (N). (Note: some transactions might involve two sections.) A. collected accounts receivable from customers B. issued common stock for cash C. declared and paid dividends D. paid accounts payable balance E. sold a long-term asset for the same amount as purchased
On which financial statement would the Supplies account appear? A. Balance Sheet B. Income Statement C. Retained Earnings Statement D. Statement of Cash Flows
Which of the following statements is false? A. Noncash activities should be reported in accrual basis financial statements. B. Net cash flow from operating activities relates to normal business operations. C. Net income usually equals net cash flow from operating activities. D. The statement of cash flows is an essential part of the basic financial statements.
Given the following information, convert Robin Companys salaries expense from its income statement into payments to employees for its statement of cash flows.
Which financial statement shows the financial performance of the company on a cash basis? A. balance sheet B. statement of owners equity C. statement of cash flows D. income statement
In which section of the statement of cash flows would each of the following transactions be included? For each, identify the appropriate section of the statement of cash flows as operating (O), investing (I), financing (F), or none (N). (Note: some transactions might involve two sections.) A. paid advertising expense B. paid dividends to shareholders C. purchased business equipment D. sold merchandise to customers E. purchased plant assets
Which of the following would be considered a cash outflow for investing activities? a. cash paid to purchase product for inventory b. cash paid to reacquire common stock c. cash paid to repay debt d. cash paid to purchase equipment
In a completed worksheet, a. the debit column contains the cash inflows. b. the debit column contains the cash outflows. c. the credit column contains the cash inflows. d. the credit column contains only operating cash flows. e. None of these.
The following are excerpts from Hamburg Companys statement of cash flows and other financial records. Compute the following for the company: A. free cash flow B. cash flows to sales ratio C. cash flows to assets ratio