Need Solution Question: 11-25Gains on the cash sales of fixed assetsA) are the excess of the book value over the cash proceeds.B) are part of cash flows from operations.C) are reported on a net-of-tax basis if material.D) are the excess of the cash proceeds over the book value of the assets sold.

To answer this question, let's go through each option to see which one best describes gains on the…

Answered: Question: 11-25 Gains on the cash sales…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 9DQ: What are two ways to report a companys net cash flow from operating activities? Briefly describe...

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7. A cash flow statement prepared in accordance with IAS 7 opens with the calculation of cash flows from operating activities from the net profit before taxation. Which of the following lists of items consists only of items that would be added to net profit before taxation in that calculation? a. Increase in trade payables, decrease in trade receivables, profit on sale of non-current assets. b. Loss on sale of non-current assets, depreciation, increase in trade receivables. c. Decrease in trade receivables, increase in trade payables, loss on sale of non-current assets. d. Decrease in inventories, depreciation, profit on sale of non-current assets.
13. Using the indirect method to calculate net cash provided (or used) by operating activities, which of the following is subtracted from net income? A. Decrease in Income Taxes Payable. O B. Depreciation Expense. C. Amortization of Intangible Assets. D. Bad Debts Expense. O E. None of the Above.
Q7
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…
23. n a single period common sized statement, the base amount is net sales in the Statement of Comprehensive Income total assets in the Statement of Financial Positior net cash sales in the Statement of Comprehensiv Income total liabilities and equity in the Statement of Financial Position net profit in the Statement of Comprehensive Income
What is the amount and direction (+ or −) of the income taxes payable adjustment to net income in theoperating activities section of the statement of cash flows? What does this adjustment represent?
Which of the following is the adjustment that is added during the reconciliation of net income to operating cash flows in indirect method? Select one: a. An increase in Prepaid Expenses b. Amortization Expense c. An increase in Accounts Receivable d. Gain on sale of capital assets
Which of the following adjustments is made to calculate cash flow from operating activities? Question 6 options: depreciation is deducted from net profit for the year income tax expense is added back to net profit for the year depreciation is added back to net profit for the year dividends are deducted from retained earnings
Help question 18
18. When using the indirect method to prepare the operating section of a statement of cash flows, which of the following is deducted from net income to compute cash provided by/used by operating activities? Decrease in accounts receivable. Gain on sale of land. Amortization of patent. All of these are deducted from net income to arrive at cash flow from operating activities.
Indicate whether each item would be added ( 1 ) or subtracted ( 2 ) in the computation of cash flowfrom operating activities using the indirect method.1. Depreciation.2. Inventory decrease.3. Accounts payable decrease.4. Accounts receivable increase.5. Accrued liabilities increase.
A statement of cash flows prepared in accordance with IAS7 Statements of cash flows opens with the calculation of cash flows from operating activities from the net profit before taxation. Which of the following lists of items consists only of items that would be ADDED to net profit before taxation in that calculation? A. Decrease in inventories, depreciation, profit on sale of non-current assets. В. Increase in trade payables, decrease in trade receivables, profit on sale of non-current assets. C. Loss on sale of non-current assets, depreciation, increase in trade receivables. D. Decrease in trade receivables, increase in trade payables, loss on sale of non-current assets.

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Question: 11-25 Gains on the cash sales of fixed assets A) are the excess of the book value over the cash proceeds. B) are part of cash flows from operations. C) are reported on a net-of-tax basis if material. D) are the excess of the cash proceeds over the book value of the assets sold.