su17
Bear Co. prepares its statement of cash flows using the indirect method. Bear sold equipment with a carrying value of $500,000 for cash of $400,000. How should Bear report the transaction in the operating and investing activities sections of its statement of cash flows?
$100,000 addition to net income $400,000 cash inflow
In a statement of cash flows, proceeds from issuing equity instruments should be classified as cash inflows from .
financing activities
Which is the most appropriate financial statement to use to determine if a company obtained financing during a year by issuing debt or equity securities?
statement of cash flows
A significant noncash transaction that need not be reported in disclosures related to the statement of cash flows is
A stock dividend declared during the year.
On July 1, Year 1, Dewey Co. signed a 20-year building lease that it reported as a finance lease. Dewey paid the monthly lease payments when due. How should Dewey report the effect of the lease payments in the financing activities section of its Year 1 statement of cash flows?
An outflow equal to the Year 1 principal payments only.
Payne Co. prepares its statement of cash flows using the indirect method. Payne's unamortized bond discount account decreased by $25,000 during the year. How should Payne report the change in unamortized bond discount in its statement of cash flows?
As an addition to net income in the operating activities section.
In accordance with IFRS, which combination below explains the effect of credit card interest incurred and paid during the period on (1) equity on the statement of financial position and (2) the statement of cash flows?
Decrease Operating or financing outflow
In a statement of cash flows (indirect method) of a business, an increase in inventories should be presented as a(n)
Deduction from income from continuing operations.
The presentation of the major classes of operating cash receipts (such as receipts from customers) minus the major classes of operating cash disbursements (such as cash paid for merchandise) is best described as the .
Direct method of calculating net cash provided or used by operating activities.
The computations required to prepare the statement of cash flows include all of the following except
Equipment purchased with a note payable.
The computations required to prepare the statement of cash flows include all of the following except .
Equipment purchased with a note payable.
The sale of available-for-sale debt securities should be accounted for on the statement of cash flows as a(n) .
Investing activity.
Cash flows from transactions in which of the following securities are most likely to be considered cash flows from operating activities?
Trading debt securities
The statement of cash flows may be presented in either a direct or an indirect (reconciliation) format. In which of these formats would cash collected from customers be presented as a gross amount? Direct Indirect
Yes no
Cash flows from operating activities
Should be presented using the direct method, but use of the indirect method of disclosure is allowed.
Paper.co
0
Abbott
300,000
Kristina
(80,000)
A company
11,000
Baler
1250,000
Kristina
1300,000
Flax
141,000
Jameson
150,000
Fara
17,000
Kristina
1700,000
Kollar
175,000
Reed
205,000
New England Co
208,000
Hoyt Corp.'s
210,000
flax
226,500
A company
250
Carlson's
250000
Sand
260,000
Kilm
330,000
Xan
356,000
Green
37000
Flax Corp
3800
Martin
40,000
Rory Co.
45,000
Flax Corp
535,800
Tam
545,000
Barber Company
600,000
Ion
65,000
Lance
70,000
Kresley
75700
Ness
76,000
Savor
84000
Which of the following items is included in the financing activities section of the statement of cash flows?
Cash effects of transactions obtaining resources from owners and providing them with a return on their investment.
Dividends paid to shareholders are shown on the statement of cash flows as
Cash flows from financing activities
Ionia Company
No yes
When the direct method of preparing a statement of cash flows is used, an enterprise should provide a reconciliation of net income to net cash flows from which activity?
Operating
In a statement of cash flows, interest payments to lenders and other creditors should be classified as cash outflows for
Operating activities.
In a statement of cash flows, if used equipment is sold at a gain, the amount shown as a cash inflow from investing activities equals the carrying amount of the equipment
Plus the gain.