Indicate in which of the three categories Depletion of Forrest should appear: Multiple Choice о cash flows from Investing activities None of the other alternatives are correct cash flows from operating activities (direct method) not part of the cash flow statement (direct method) cash flows from financing activities

Indicate in which of the three categories Depletion of Forrest should appear: Multiple Choice о cash flows from Investing activities None of the other alternatives are correct cash flows from operating activities (direct method) not part of the cash flow statement (direct method) cash flows from financing activities

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

Which of the following items should not appear on the Cash Flow Statement? a) Repayment of borrowings b) Purchase of intangible assets c) None of the above d) Interest paid
In a statement of cash flows using indirect method, an increase ininventory is A. deducted from Net IncomeB. reported as an outflow of cashC. added to net incomeD. no effect on cash flows
In a cash flow statement which one of the following would appear as an inflow of cash? O The profit on sale of a fixed asset. A repayment of debenture loans. An issue of shares at a premium, An increase in stock during the year.
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Identify the cash flow activity involve when an entity sold equipment at book value Options: • Not part of cashflow • Investing • Operating • Financing
When Generating a Statement of Cash Flows, the direct method of preparation would result in a greater value in Net Cash Provided by Operating Activities then the Indirect Method True False
To prepare the statement of cash flows using the indirect method: Group of answer choices A)A decrease in inventory is added to net income. B)A purchase of a machine is subtracted from net income. c)Cash paid for dividends is added to net income. d)A decrease in accounts payable is added to net income. e)None of the above
Which of the following statements about the direct and indirect methods for presenting Cash Flow Statement is NOT true? According to the indirect method, cash flows begin with net income or loss and is followed by subsequent additions to or deductions from that amount for non-cash revenue and expense items, resulting in cash flow from operating activities. The direct method is based on use of actual cash inflows and outflows from a company’s operations. Using direct and indirect methods leads to different amounts shown as cash flow from operations, investing, and financing activities. The cash flow statement, income statement and balance sheet are interconnected: the cash flow amount is equal to the corresponding income statement amount plus or minus the change in the related balance sheet account.
The payback period method is inferior to the net present value method because it ________. is difficult to compute Deals with accounting income rather than cash flows Fails to consider cash flows beyond the payback period
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In the Statement of Cash Flows, depreciation is ignored because it is a non cash expense. Group of answer choices True False
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