Which of the following is NOT shown in the correct category on the statement of cash flows? Dividends paid are financing cash outflows. O A rent payment on a building is an operating cash outflows. Cash paid to buy a building is an investing cash outflow. O Payment for the purchase of inventory is an operating cash outflow O All of the above are in the correct category.

Which of the following is NOT shown in the correct category on the statement of cash flows? Dividends paid are financing cash outflows. O A rent payment on a building is an operating cash outflows. Cash paid to buy a building is an investing cash outflow. O Payment for the purchase of inventory is an operating cash outflow O All of the above are in the correct category.

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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What are the differences between cash from operating activities, cash from investing activities, and cash from financing activities?
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Select the item that matches with the description. Descriptions a. Begins with net income and then lists adjustments to net income in order to arrive at operating cash flows. b. Item included in net income, but excluded from net operating cash flows. c. Net cash flows from operating activities divided by average total assets. d. Cash transactions involving lenders and investors. e. Cash transactions involving net income. f. Cash transactions for the purchase and sale of long-term assets. g. Purchase of long-term assets by issuing stock to seller. h. Shows the cash inflows and outflows from operations such as cash received from customers and cash paid for inventory, salaries, rent, interest, and taxes. Terms
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