cash flow conceptual
Which of the following is least likely a change in cash flow from operations under US GAAP? A. A decrease in notes payable. B. An increase in interest expense. C. An increase in accounts payable.
A. A change in notes payable is a financing cash flow.
Sale of inventory would be classified as
A. Operating cash flow.
Under IFRS, interest expense would be classified as
A. Under IFRS, interest expense can be classified as either an operating cash flow or financing cash flow.
Under US GAAP, interest paid would be classified as
A. operating cash flow.
Under US GAAP, taxes paid would be classified as
A. operating cash flow.
An increase in notes payable would be classified as
B. financing cash flow.
Issuing bonds would be classified as
B. financing cash flow.
Sale of land would be classified as
B. investing cash flow.
Sale of obsolete equipment would be classified as
B. investing cash flow.
Which of the following would be least likely to cause a change in investing cash flow? A. The sale of a division of the company. B. The purchase of new machinery. C. An increase in the depreciation expense.
C. Depreciation does not represent a cash flow. To the extent that it affects the firm's taxes, an increase in deprecation changes operating cash flows, but not investing cash flows.
The write-off of obsolete equipment would be classified as
C. no cash flow impact.
Depreciation expense would be classified as
Depreciation expense would be classified as no cash flow impact
Under US GAAP, dividends received from investments would be classified as
Operating cash flow
Which of the follow items is least likely considered a cash flow from financing activity under US GAAP C. The payment of interest on debt
The payment of interest on debt is an OPERATING cash flow under US GAAP
In preparing a common-size cash flow statement, each cash flow is expressed as a percentage of:
Total revenues
Where are dividends paid to shareholders reported in the cash flow statement under US GAAP and IFRS?
Under US GAAP, dividends paid are reported as financing activities. Under IFRS, dividends paid can be reported as either operating or financing activities.
Torval, Inc. retires debt securities by issuing equity securities. This is considered a:
non-cash transaction