General Account Consider the following event: Borrowed Cash. Which of the followingcombination of changes in the accounting equation describes the givenevent?a. Liabilities decrease; Owners' equity increaseb. Assets decrease; Liabilities decreasec. Assets decrease; Owners' equity decreased. Assets increase; Assets decreasee. Assets increase; Liabilities increasef. Assets increase; Owners' equity increase

Correct Answer: e. Assets increase; Liabilities increase Explanation:When a business borrows cash,…

Answered: Consider the following event: Borrowed…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter16: Statement Of Cash Flows

Section: Chapter Questions

Problem 12MC: Which of the following represents a source of cash in the investing section? A. sale of investments...

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Which of the following would be included in the financing section? A. loss on sale of investments B. depreciation expense C. increase in notes receivable D. decrease in notes payable
Which statement is most directly affected by a change to net income? A. balance sheet B. income statement C. statement of retained earnings D. statement of cash flows
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Four financial statements are usually prepared for a business. The statement of cash flows is usually prepared last. The statement of stockholders' equity (SSE), the balance sheet (B), and the income statement (1) are prepared in a certain order to obtain information needed for the next statement. In what order are these three statements prepared? Oa. B, I, SSE Ob. SSE, I, B Oc. B, SSE, I Od. 1, SSE, B
Which of the following is a cash inflow? a. an increase in dividend payment b. a decrease in accrued liabilities c. a decrease in accounts receivable d. a decrease in accounts payable
Liquid assets is determined by Select one: a. Current assets - current liabilities O b. Current liabilities- Bank overdraft c. Current assets +stock+ prepaid expenses O d. Current assets-stock-Prepaid expenses
11In a cash flow statement, which one of the following would appear as an outflow of cash? Select one: a. An increase in debtors during the year. b. An increase creditor during the year. c. Depreciation charges on fixed assets. d. Loss on sale of a fixed asset. 12A credit balance on accruals account indicates? Select one: a. a liability and an expense owing. b. an asset and a prepayment of income. c. an asset and an accrual of income. d. a liability and an expense prepaid. 6ABC paid XYZ rent in advance for one year. By recording this payment ABC will reflect: Select one: a. An increase in assets and liabilities. b. An increase in assets and stockholder's equity. c. An increase in assets and decrease in liabilities. d. No change in total assets. 8Which of the following expenses will not be analyzed to administrative expenses in a published profit and loss account for a company? Select one: a. Bank charges and interest. b. Office expenses. c. General expenses. d. Managing Director…
Match the words to the definitions. Solvency Accounts Receivable Balance Sheet Noncurrent Assets Income Statement Retained Earnings Noncurrent Liabilities. Liquidity Current Assets Cash Flow Statement ✓ [Choose ] A forecast of the amount and timing of future cash inflows and outflows over some period of time. A summary of the revenues and expenses of a business over a given period of time. When net worth is greater than zero, or assets are greater than liabilities on the balance sheet. The ability to meet the day-to-day cash needs of the firm. Profits that are not paid out in dividends but are reinvested in the firm itself. Summarizes a firm's financial position at a given point in time and lists the firm's assets, liabilities, and net worth. Debts that others owe the business, usually arising from previous credit sales. Something the firms owns or uses that will not turn into cash within the next accounting period. Either cash or an items that will become cash in the next accounting…
ductory financial accounting_ Liquidity is simply: O a. another term for non-current assets O b. a company's ability to pay obligations when due O c. another term for current liabilities O d. another term for cash ype here to search
Indicate whether each item should be added to or subtracted from net income to arrive at the net cash flow from operating activities. a. Increase in inventory b. Amortization of discount on investment in bonds c. Decrease in accounts payable d. Amortization of discount on bonds payable e. Increase in salaries payable f. Increase in prepaid expenses g. Subsidiary loss under the equity method h. Gain on disposal of equipment i. Decrease in accounts receivable j. Increase in deferred tax liability
The following information can be obtained by examining a company's balance sheet and income statement information: a. Increases in current asset account balances, other than cash. b. Decreases in current asset account balances, other than cash. c. Cash outflows to purchase long-term assets. d. Decreases in current liability account balances. e. Cash outflows to repay long-term debt. f. Gains recognized on the sale of long-term assets. g. Noncash expenses (e.g., depreciation). h. Cash outflows to purchase treasury stock. i. Increases in current liability account balances. j. Cash inflows from the sale of long-term assets. k. Cash inflows from the issue of common stock. I. Cash outflows to pay dividends. m. Losses incurred from the sale of long-term assets. n. Cash inflows from the issue of long-term debt. Required For each item, indicate whether it would be used in the computation of net cash flows from operating, investing, or financing activities. Also, indicate whether the item would…
24. Changes in balance sheet accounts are necessary fora.A typical ratio analysis.b.Pro forma balance sheet construction.c.Statement of cash flows construction.d.Profit and loss analysis.e.Pro forma income statement construction. 25. Which of the following would be classified as a use of cash?a.An increase in accounts payable.b.A decrease in marketable securities.c.A decrease in accounts receivable.d.An increase in retained earnings.e.An increase in inventories.

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