None true or false 12) The issuance of long-term debt results in a cash outflow as reported in the financingsection. 13) Investing activities involve obtaining resources as a borrower and repaying creditors. 14)Issuing equity securities is an operating activity on the statement of cash flows. 15) Payment of dividendsis a financing activity

The above answers can be explained as under - 12) The statement is true because, the financing…

Answered: true or false 12) The issuance of…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter16: Statement Of Cash Flows

Section: Chapter Questions

Problem 11Q: Note payments reduce cash and are related to long-term debt. Do these facts automatically lead to...

See similar textbooks

Similar questions

Note payments reduce cash and are related to long-term debt. Do these facts automatically lead to their inclusion as elements of the financing section of the statement of cash flows? Explain.
Which of the following is included in the cash flows from financing activities section of the statement of cash flows? O A. Interest received from borrowers.O B. Purchase of stock in another company.O C. Purchase of treasury stock.O D. Interest paid to lenders.
When a company borrows funds from creditors, it is considered a form of: Select one: A. equity financing. B. debt financing.
5. In what section of the statement of cash flows is the repayment (retirement) of bonds payable reported? Noncash activities note Operating Activities Investing Activities Financing Activities
What is a primary objective of financial reporting? A. To provide useful information to investors, creditors, and financial statement users. B. All of these answers. C. To provide cash flow information (amounts, timing, and uncertainty). D. To provide information about resources and claims to resources.
Classifying Items in the Statement of Cash Flows The following items are commonly reported in a statement of cash flows (indirect method presentation). For each item 1 through 20, determine (a) in which section the item is presented (operating, investing, or financing) and (b) whether the associated dollar amount is added or subtracted in the statement. (a) (b) 1. Payments of short-term debt. AnswerOperatingInvestingFinancing AnswerAddSubtract 2. Repurchases of common stock. AnswerOperatingInvestingFinancing AnswerAddSubtract 3. Purchases of property and equipment. AnswerOperatingInvestingFinancing AnswerAddSubtract 4. Sale of investments classified as long-term. AnswerOperatingInvestingFinancing AnswerAddSubtract 5. Proceeds from the issuance of common stock. AnswerOperatingInvestingFinancing AnswerAddSubtract 6. Increase in prepaid expenses and other current assets. AnswerOperatingInvestingFinancing AnswerAddSubtract 7. Acquisition for cash of a competitor.…
9.When the Indirect Method is used to prepare the Statement of Cash Flows, the amortization of a premium in bonds payable is taken into account when computing the cash that comes from Select one: a. investment activities. b. operational activities. c. operational activities and financing activities. d. financing activities
In preparing a statement of cash flows, which of the following transactions would be considered an investing activity? a. Issuance of bonds payable at a discount b. Sale of an operating segment c. Issue of share capital d. Purchase of treasury shares
Cash paid to purchase long-term investments would be reported in a. a separate schedule of noncash investing and financing activities b. the investing activities section of the statement of cash flows c. the financing activities section of the statement of cash flows d. the operating activities section of the statement of cash flow
28. Help me selecting the right answer. Thank you
30. The statement of financial position contributes to financial reporting by providing a basis for all of the following except * b. evaluating the capital structure of the enterprise. a. computing rates of return. c. determining the increase in cash due to operations. d. assessing the liquidity and financial flexibility of the enterprise 31.In a statement of cash flows, interest payments to lenders and other creditors should be classified as cash outflows for * b. borrowing activities. d. financing activities. Option 1 c. lending activities. a. operating activities. 32. In a statement of cash flows, proceeds from issuing equity instruments should be classified as cash inflows from * d. financing activities. a. lending activities. b. operating activities. c. investing activities. 33.On the statement of cash flows, which of the following items will…
Payments to acquire bonds of other corporations should be classified on a statement of cash flows as: A. A lending activity. B. An operating activity. C. A financing activity. D. An investing activity.

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS