2. Provide at least one example of an account reported in the income statement that would be dassified as (a) an operating activity. (b) an investing activity, and (c) a financing activity. The format of financial statements varies from country to country. The FASB and IASB propose that financial statements in the future be organized using the same format currently used in the statement of cash flows-operating, investing, and financing activities. This would greatly change the current format used to prepare the income statement and the balance sheet.

2. Provide at least one example of an account reported in the income statement that would be dassified as (a) an operating activity. (b) an investing activity, and (c) a financing activity. The format of financial statements varies from country to country. The FASB and IASB propose that financial statements in the future be organized using the same format currently used in the statement of cash flows-operating, investing, and financing activities. This would greatly change the current format used to prepare the income statement and the balance sheet.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 26BE

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The format of financial statements varies from country to country. The FASB and IASB propose that financial statements in the future be organized using the same format currently used in the statement of cash flows-operating, investing, and financing activities. This would greatly change the current format used to prepare the income statement and the balance sheet. Required: 1. Explain the differences among operating, investing, and financing activities. You might want to refer back to the first section in Chapter 11 on the statement of cash flows.
Access the FASB Accounting Standards Codification at the FASB website ( asc.fasb.org ). Determine the specific citation for accounting for each of the following items: 1. Disclosure of interest and income taxes paid if the indirect method is used. 2. Primary objectives of a statement of cash flows. 3. Disclosure of noncash investing and financing activities.
Financial statements generally include all BUT which of the following? Group of answer choices A. Income statement B. Government income tax return C. Balance sheet D. Statement of cash flows
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Explain the purpose of SFAC No. 7: “Using Cash Flow Information and Present Valuein Accounting Measurements.
. All entities that prepare financial statements in conformity with PFRSs are required to present a statement of cash flows. * true or false?
Match each of the following term with the corresponding description. Not all descriptions will be used._____ Operating activities_____ Indirect method_____ Cash equivalent_____ Investing activities_____ Direct method_____ Financing activitiesA. Measures the percent of net income that comes from high-margin products.B. Includes such events as the receipt of dividends and interest on investment assets.C. Includes assets that are very liquid and have original maturities of three months or less.D. The percent of total debt represented by a company's cash account.E. These activities include only purchases made with borrowed funds.F. Where cash flows from operating activities are calculated by converting each revenue and expense item from an accrual to a cash basis.G. This ratio multiplies net income by the average rate of interest the company receives on its investments.H. This ratio uses net income instead of operating cash flow to Analysis a company's ability to finance the cost of its…
Which one of the following shows the sections of a cash flow statement correctly?Select one:a. Operating, Investing, Financingb. Investing, Financing, Leasingc. Operating, Financing, IFRS Reportingd. Operating, Investing, Factoring
Where would you report resources and claims to those resources? A. In the statement of cash flows B. In the balance sheet C. In the income statement D. In the statement of activit
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