QUESTION 2Samuels Company prepares its statement of cash flows using the direct method and engaged in the following transactions during 2017:Transaction 1. Samuels purchased inventory on account.Transaction 2. Samuels collected open accounts receivable.Transaction 3. Samuels exchanged a building for land and cash.Transaction 4. Samuels issued 75,000 shares of preferred stock.Transaction 5. Samuels purchased a three-year fire insurance policy.Which of these transactions would not be included in whole or in part on the statement of cash flows? Transaction 1 only Transaction 5 only Transactions 1, 3, and 5 Transactions 1 and 3

Statement of Cash Flow - A cash flow statement is a statement that contains all the activities…

Answered: QUESTION 2 Samuels Company…

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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QUESTION 2

Samuels Company prepares its statement of cash flows using the direct method and engaged in the following transactions during 2017:

Transaction 1. Samuels purchased inventory on account.
Transaction 2. Samuels collected open accounts receivable.
Transaction 3. Samuels exchanged a building for land and cash.
Transaction 4. Samuels issued 75,000 shares of preferred stock.
Transaction 5. Samuels purchased a three-year fire insurance policy.

Which of these transactions would not be included in whole or in part on the statement of cash flows?

Transaction 1 only

Transaction 5 only

Transactions 1, 3, and 5

Transactions 1 and 3

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