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iv. Which GAAP principle is clearly reflecting from above statement? Explain that GAAP principle figured out in (vii)? Why owner invested 80,000 dollars? Why there is no dollar sign with this amount? v. vi.

iv. Which GAAP principle is clearly reflecting from above statement? Explain that GAAP principle figured out in (vii)? Why owner invested 80,000 dollars? Why there is no dollar sign with this amount? v. vi.

FINANCIAL ACCOUNTING
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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OVERNIGHT AUTO SERVICE Statment of Cash Flows. For the Month Ended November 30-11-2020 Cash flows from operating activities: $ 2,000 (1,400) Cash received from revenue transactions Cash paid for expenses Net cash provided by operating activities Cash flows from investing activities: Purchase of Land Purchase of building Payment for the purchase of tools Collection for sale of tools $800 S(52,000) (6,000) (6,800) 600 Net cash provided by operating activities Cash flows from financing activities: Investment by owner Increase in cash for the month (64,200) 80,000 $16,600 400 $16,999 Cash balance, Nov 1, 2020 Cash balance, Nov 30, 2020 Page 1 of 2
Transcribed Image Text:OVERNIGHT AUTO SERVICE Statment of Cash Flows. For the Month Ended November 30-11-2020 Cash flows from operating activities: $ 2,000 (1,400) Cash received from revenue transactions Cash paid for expenses Net cash provided by operating activities Cash flows from investing activities: Purchase of Land Purchase of building Payment for the purchase of tools Collection for sale of tools $800 S(52,000) (6,000) (6,800) 600 Net cash provided by operating activities Cash flows from financing activities: Investment by owner Increase in cash for the month (64,200) 80,000 $16,600 400 $16,999 Cash balance, Nov 1, 2020 Cash balance, Nov 30, 2020 Page 1 of 2
iv. Which GAAP principle is clearly reflecting from above statement? Explain that GAAP principle figured out in (vii)? Why owner invested 80,000 dollars? Why there is no dollar sign with this amount? What do we have to do with final balance? V. vi. vii. viii. What is the reason of mentioning investing activities in the middle? What is the reason of mentioning the financing activities in the end? Why not to mention at the top! Is there any major concern? Or All is well after rectifying mistakes? ix. X.
Transcribed Image Text:iv. Which GAAP principle is clearly reflecting from above statement? Explain that GAAP principle figured out in (vii)? Why owner invested 80,000 dollars? Why there is no dollar sign with this amount? What do we have to do with final balance? V. vi. vii. viii. What is the reason of mentioning investing activities in the middle? What is the reason of mentioning the financing activities in the end? Why not to mention at the top! Is there any major concern? Or All is well after rectifying mistakes? ix. X.
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