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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Similar questions

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
prob. Financial Account
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
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…
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
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.
Debit: decrease both assets and liabilities. a. increase assets and decrease b. liabilities. decrease assets and increase Oc. liabilities. С. increase both assets and liabilities. Od.
Which of the following normally has a net credit balance? A. Asset accounts such as cash, accounts receivable, inventory, and equipment B. Expenses that decrease retained earnings C. Dividends that decrease retained earnings D. Revenues that increase retained earnings
Which of the following will be reflected as a cash inflow in the statement of cash flows of an entity? A) Decrease in non-current loan B) Increase in inventory C) Decrease in accounts receivable D) Decrease in accounts payable
1. which of the following transactions will result in the increase and decrease in liability? a. payment of loan by installmentb. borrowed money from the bankc. issued a promissory note in payment of a liabilityd. request for an extension of the date of payment 2. a statement which shows where the money of the business is obtained and used? a. statement of financial positionb. statement of cash flowsc. cash budgetd. statement of revenues and expenses
1 According to the statement of cash flows, an increase in accounts payable will the cash flow from activities. ut of Select one: a. Increase; financing. O b. Increase; operating. Oc. Increase; investment. d. Decrease; operating. e. Decrease; financing.

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