Match each item on the left to the appropriate cash flow classification on the right. (You may use each classification r than once -- or not at all.) A company purchases a warehouse for $350,000 cash. A. Cash flow from operating activities. B. Cash flows from financing activities. C. No cash flow effect. ✓ A company uses $100,000 to pay dividends on common stock. D. Cash flow from investing activities. ✓ A company acquires equipment by signing a note payable for the purchase amount. A company collects $50,000 from a customer to provide services over the next year. ✓ A company pays interest of $50,000 on outstanding bonds payable
Match each item on the left to the appropriate cash flow classification on the right. (You may use each classification r than once -- or not at all.) A company purchases a warehouse for $350,000 cash. A. Cash flow from operating activities. B. Cash flows from financing activities. C. No cash flow effect. ✓ A company uses $100,000 to pay dividends on common stock. D. Cash flow from investing activities. ✓ A company acquires equipment by signing a note payable for the purchase amount. A company collects $50,000 from a customer to provide services over the next year. ✓ A company pays interest of $50,000 on outstanding bonds payable
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Question 8?
Transcribed Image Text:QUESTION 8
Match each item on the left to the appropriate cash flow classification on the right. (You may use each classification more
than once -- or not at all.)
A company purchases a warehouse for $350,000
cash.
A. Cash flow from operating activities.
B. Cash flows from financing activities.
A company uses $100,000 to pay dividends on
common stock.
C. No cash flow effect.
D. Cash flow from investing activities.
✓ A company acquires equipment by signing a note
payable for the purchase amount.
✓ A company collects $50,000 from a customer to
provide services over the next year.
✓ A company pays interest of $50,000 on outstanding
bonds payable.
QUESTION 9
For each event on the left, indicate the effect on Net Income (increase, decrease, no effect).
A company accrues interest income on a CD that will A. Increase
mature in 3 months.
B. Decrease
A company records a write-down of inventory to lower
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education