(a).
Concept Introduction:
Cash flow statement: The cash flow statement identifies
Whether the transaction appears in cash flow from operating, investing, or financial activity.
(b).
Concept Introduction:
Cash flow statement: The cash flow statement identifies cash inflow and outflow over the period and determines net cash inflow or outflow from its operations investments and financing during the period of time, it is divided into cash flow from operating activity, financing activity, and investing activity.
Whether the given transactions result in cash inflow or outflow.
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FINANCIAL AND MANAGERIAL ACCOUNTING
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- 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.arrow_forwardIn 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 assetsarrow_forwardIn 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. purchased stock in Xerox Corporation B. purchased office supplies C. issued common stock D. sold plant assets for cash E. sold equipment for casharrow_forward
- On which financial statement would the Supplies account appear? A. Balance Sheet B. Income Statement C. Retained Earnings Statement D. Statement of Cash Flowsarrow_forwardThe following shows excerpts from Camole 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 ratioarrow_forwardComponents of the Statement of Cash Flows Identify each of the following items as operating (O), investing (I), financing (F), or not on the statement of cash flows (N). ______ 1. Paid for supplies ______ 2. Collected cash from customers ______ 3. Purchased land (held for resale) ______ 4. Purchased land (for construction of new building) ______ 5. Paid dividend ______ 6. Issued stock ______ 7. Purchased computers (for use in the business) ______ 8. Sold old equipmentarrow_forward
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