Concept explainers
Cash Flow Statement:
Cash flow statement is that statement in which, transaction related to cash are recorded. It is mandatory report and included in the financial statement of the company. It is divided into three parts operating activities, investing activity, and financial activity
Operating Activity:
Operating activity is the first part of the cash flow statement. The main focuses of the operating activity on the
Financial Activity:
Financial activity is the part of the cash flow statement. Financial activity involves the long term liability, borrowing and
Investing Activity:
Investing activity is the third part of the cash flow statement which gives the information related to the acquisition and disposal of the long term assets of the company such as land and building, investment and plant.
To identify: Classification of each item.
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Chapter 12 Solutions
FINANCIAL ACCOUNTING FUNDAMENTALS W/ CO
- For each independent situation below, place an (X) by the transactions that would be included in the statement of cash flows. Table 2.3arrow_forwardFor the alternatives shown, determine the sum of the cash flows in the Z-X difference column.arrow_forwardCash Flow Statement is related to a. AS-1 b. AS-6 c. AS-3 d. AS-12arrow_forward
- Prepare cash flow statement using direct method. Please provide typed answer or excelarrow_forwardWhen using the spreadsheet for the statement of cash flows indirect method entries made on the spreadsheet are ?arrow_forwardWrite the preparation of the Statement of Cash Flows by Direct method BI 1,arrow_forward
- can you help me fill out the statement of cash flows based on the chartarrow_forwardUsing examples from the income statement distinguish between cash outflows and cash inflows. Please provide two examples for each cash flow.arrow_forwardWhen performing vertical analysis of a balance sheet, the base amount is ________. A gross profit B total cash and cash equivalents C net income D total assetsarrow_forward
- Classifying transactions on the statement of cash flows—indirect method Consider the following transactions: Identify the category of the statement of cash flows in which each transaction would be reported.arrow_forwardDescribe the five steps used to prepare the statement of cash flows by the indirect method.arrow_forwardPrepare a statement of cash flows using the indirect methodarrow_forward
- Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage LearningFinancial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage LearningPrinciples of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
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