4. The first stepinthe preparation of the statement of cash flows is to detemine the net cash flow from operating activities. 5. The primary purpose of the statement of cash flows is to provide cash-basis information about the company's operating, investing, and financing activities. 6. Paying dividends to investors creates a cash outflow from financing activities. 7. Selling a piece of equipment below cost is an example of investing activity. 8.The purchase of land is classified in the statement of cash flows of operating activities. 9.The statement of cash flow is divided into three required categories: operating, investing, and financing. 10. There is an outflow of funds in depreciation.
4. The first stepinthe preparation of the statement of cash flows is to detemine the net cash flow from operating activities. 5. The primary purpose of the statement of cash flows is to provide cash-basis information about the company's operating, investing, and financing activities. 6. Paying dividends to investors creates a cash outflow from financing activities. 7. Selling a piece of equipment below cost is an example of investing activity. 8.The purchase of land is classified in the statement of cash flows of operating activities. 9.The statement of cash flow is divided into three required categories: operating, investing, and financing. 10. There is an outflow of funds in depreciation.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Number 4, 5,6,7,8,9,10 please.
Transcribed Image Text:Directions: Read each sentence carefully and detemine whether the statement is TRUE or FALSE.
_ 1. Firancing activities generally result fromacquisition and disposal of non-aument assets.
2. The IAS 7 (IASB, 2001) encourages the use of the indirect method overthe direct method.
_ 3. The direct method or reconciliation method reports cash receipts and cash disbursements
from operating activities.
_ 4. The first stepinthe preparation of the statement of cash flows is to detemine the net cash
flow from operating activities.
_ 5. The primary purpose of the statement of cash flows is to provide cash-hasis information
about the company's operating, investing, and financing activities.
- 6. Paying dividends to investors creates a cash outflow from financing activities.
- 7. Selling a piece of equipment below cost is an example of investing activity.
8.The purchase of land is classified in the statement of cash flows of operating activities.
- 9.The statement of cash flow is divided into three required categories: operating, investing,
and financing.
10. There is an outflow of funds in depreciation.
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