Cash Flow Statement: Cash flow statement is that statement in which, transaction related to cash inflow and outflow 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 cash inflow and outflow from the selling goods, providing services and manufacturing. Long term capital and investing cost are not included in the operating activity. There are two type of the method to calculate the cash flow from operating activities. To identify: Direct method to report cash flow from operating activities.

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Answer 1

Question

Chapter 12, Problem 4DQ

To determine

Cash Flow Statement:

Cash flow statement is that statement in which, transaction related to cash inflow and outflow 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 cash inflow and outflow from the selling goods, providing services and manufacturing. Long term capital and investing cost are not included in the operating activity. There are two type of the method to calculate the cash flow from operating activities.

To identify: Direct method to report cash flow from operating activities.

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Answer 2

Question

Chapter 12, Problem 4DQ

To determine

Cash Flow Statement:

Cash flow statement is that statement in which, transaction related to cash inflow and outflow 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 cash inflow and outflow from the selling goods, providing services and manufacturing. Long term capital and investing cost are not included in the operating activity. There are two type of the method to calculate the cash flow from operating activities.

To identify: Direct method to report cash flow from operating activities.

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Answer 3

Question

Chapter 12, Problem 4DQ

To determine

Cash Flow Statement:

Cash flow statement is that statement in which, transaction related to cash inflow and outflow 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 cash inflow and outflow from the selling goods, providing services and manufacturing. Long term capital and investing cost are not included in the operating activity. There are two type of the method to calculate the cash flow from operating activities.

To identify: Direct method to report cash flow from operating activities.

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Answer 4

Question

Chapter 12, Problem 4DQ

To determine

Cash Flow Statement:

Cash flow statement is that statement in which, transaction related to cash inflow and outflow 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 cash inflow and outflow from the selling goods, providing services and manufacturing. Long term capital and investing cost are not included in the operating activity. There are two type of the method to calculate the cash flow from operating activities.

To identify: Direct method to report cash flow from operating activities.

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Answer 5

Chapter 12, Problem 4DQ

To determine

Cash Flow Statement:

Cash flow statement is that statement in which, transaction related to cash inflow and outflow 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 cash inflow and outflow from the selling goods, providing services and manufacturing. Long term capital and investing cost are not included in the operating activity. There are two type of the method to calculate the cash flow from operating activities.

To identify: Direct method to report cash flow from operating activities.

Answer 6

Chapter 12, Problem 4DQ

To determine

Cash Flow Statement:

Cash flow statement is that statement in which, transaction related to cash inflow and outflow 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 cash inflow and outflow from the selling goods, providing services and manufacturing. Long term capital and investing cost are not included in the operating activity. There are two type of the method to calculate the cash flow from operating activities.

To identify: Direct method to report cash flow from operating activities.

Answer 7

Chapter 12, Problem 4DQ

To determine

Cash Flow Statement:

Cash flow statement is that statement in which, transaction related to cash inflow and outflow 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 cash inflow and outflow from the selling goods, providing services and manufacturing. Long term capital and investing cost are not included in the operating activity. There are two type of the method to calculate the cash flow from operating activities.

To identify: Direct method to report cash flow from operating activities.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 12 - Prob. 1MCQ Ch. 12 - Prob. 2MCQ Ch. 12 - Prob. 3MCQ Ch. 12 - Prob. 4MCQ Ch. 12 - Prob. 5MCQ Ch. 12 - Prob. 1DQ Ch. 12 - Prob. 2DQ Ch. 12 - Prob. 3DQ Ch. 12 - Prob. 4DQ Ch. 12 - Prob. 5DQ

Solution Summary: The author explains that the cash flow statement is a mandatory report and is divided into three parts operating activities, investing activity, and financial activity.

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Chapter 12 Solutions