Answered: Which of the following will NOT appear…

Business

Accounting

Which of the following will NOT appear in the cash flows from operating activities?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter14: Statement Of Cash Flows

Section: Chapter Questions

Problem 10DQ

See similar textbooks

Related questions

Q: To determine cash payments for operating expenses for the statement of cash flows using the direct…

A: operating expenses on an accrual basis converted to operating expenses on a cash basis Two…

Q: Which of the following would be subtracted from net income when determining cash flows from…

A: Cashflow statement shows the cash inflow or outflow from various activities. Cashflow statement is…

Q: Which of the following should be deducted from net income in computing net cash flows from operating…

A: Introduction: Statement of cash flows: All cash in and out transactions in an accounting period is…

Q: Which one of the following is NOT an example of cash flows in operating activities according to…

A: Adjustments of non-cash incomes and expenses are not made in the operating activities according to…

Q: Which of the following should be added to net income in calculating net cash flow from operating…

A: Cash flows from operating activities: It is a section of Statement of cash flow that explains the…

Q: Explain why depreciation, depletion, and amortization cost in the operational activities part of the…

A: The Answer

Q: Which of the following should be added to net income in calculating net cash flow from operating…

A: Cash flows from operating activities is a section in cash flow statement which shows all income and…

Q: Which of the following should NOT be taken into account in calculating free cash flow? Select one:…

A: Free Cash Flow = Net income + Depreciation – Change in Working Capital – Capital Expenditure

Q: Which of the following would not be added to net income in calculating cash flows from operating…

A: The question's central theme is to assess your grasp of the adjustments applied to net income when…

Q: Which of the following is NOT a reason why cash flow may not equal net income? a. Capital…

A: The relationship of cash flow with net income is Cash flow =net…

Q: Given the items below, which of the following is a subtraction from net income to arrive at…

A: Cash flow from operating activities are those activities that shows day to day operating activities

Q: Which of the following should be subtracted from net income in computing net cash flows from…

A: Introduction: Statement of cash flows: All cash in and out flows are shown in statement of cash…

Q: more than one answers is correct ( )Which of the following should NOT be added to net income in…

A: In calculation of cash flow from Operating Activities using indirect method, the following…

Q: How many of these items would be subtracted from net income to prepare the operating activities…

A: The cash flow statement is part of the financial statements of the company. It is prepared at the…

Q: To determine cash payments for operating expenses for the statement of cash flows using the direct…

A: Operating expenses: These are the expenses that a business incur through its normal business and…

Q: Which of the following items is deducted from net income to arrive at cash flow from operations when…

A: The item that is deducted from net income to arrive at cash flow from operations when using the…

Q: Given the items below, which of the following is a subtraction from net income to arrive at…

A: Cashflow Statement - It is a financial statement which summarizes the amount of cash received and…

Q: Which of the following should be deducted from net income in calculating net cash flow from…

A: To calculate net cash flow from operating activities using the indirect method, expenses or losses…

Q: Which of the following would be subtracted from net income when using the indirect method to derive…

A: The cash flow from operating activities can be computed either directly or indirectly. The indirect…

Q: Indicate whether each item should be added to or subtracted from net income to arrive at the net…

A: Cash flows from operating activities: It is a section of Statement of cash flow that explains the…

Q: Which of the following should be subtracted from net income in computing net cash flows from…

A: Statement of cash flows: It is a financial statement that shows the increase or decrease in the cash…

Q: In the statement of cash flows using indirect method, depreciation is treated as an adjustment to…

A: Depreciation expense represents the cost of tangible asset allocated over the useful life of asset.…

Q: Which of the following situations required us to make an downward adjustment to net income…

A: Cash flow from operating activities (CFO) – also referred to as operating cash flow, free cash flow…

Q: Choose the letter of correct answer: A loss on sale of machinery is presented in a statement of…

A: SOLUTION- LOSS ON SALE OF MACHINERY= A NON OPERATING ITEM RESULTING FROM THE SALE OF THIS LONG TERM…

Q: Which of the following will be reflected in the "Cash flows from operating activities" of a…

A: Cash flow statement is a statement which shows all cash inflows and cash outflows of the business…

Q: Which of the following should be added to net income in calculating net cash flow from operating…

A: Cash flow from operating activities includes the cash inflows and outflows from the business…

Q: The method of presenting cash flow from operations where net income is adjusted for items without…

A: Cash flow from operations means the net of cash inflows and cash outflows resulting from the…

Q: Which of the following is the adjustment that is added during the reconciliation of net income to…

A: Adjustments related to non-cash transactions are done to reconcile net income in the cash flow…

Question

Which of the following will NOT appear in the cash flows from operating activities?

Select one:

a. Decrease in Inventory

b. Depreciation Expense

c. Increase in Accounts Payable

d. Gain on Sale of Equipment

e. All of the above would appear in the Operating Section.

Definition Definition Net amount of cash that an entity receives and expends over the course of a given period. For a business to continue operating, positive cash flows are required, and they are also necessary to produce value for investors. Investors in particular prefer to see growing cash flows even after capital expenditures have been paid for (which is known as free cash flow).

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!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

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.

Similar questions

In computing the periods net operating cash flows, why are noncash expenses added back to net income?
Which of the following would be classified as a cash outflow from an operating activity? a. Purchase of an investment b. Payment of dividends c. Purchase of equipment d. Payment of goods purchased from suppliers
What adjustment(s) should be made to reconcile net income to net cash flows from operating activities (indirect method) considering the following balances in current assets?
Under the direct method of preparing a statement of cash flows, what adjustment is made for depreciation expense?
Why is depreciation an addition in the operating section of the statement of cash flows, when prepared by the indirect method?
When preparing the operating section of the statement of cash flows, using the indirect method, how must gains and losses be handled? Why?
Which of the following items is deducted from net income to arrive at cash flow from operations when using the indirect method? a) Decrease in accounts payable b) Depreciation expense c) Amortization expense d) Decrease in accounts receivable
Which of the following should be subtracted from net income in computing net cash flows from operating activities using the indirect method? a.A decrease in inventory b.A decrease in prepaid expenses c.An increase in inventory d.An increase in accrued expenses
Which of the following should be subtracted from net income in computing net cash flows from operating activities using the indirect method? a.A decrease in inventory b.An increase in accrued expenses c.A decrease in prepaid expenses d.An increase in inventory
Which of the following would be subtracted from net income when using the indirect method to derive net cash from operating activities? a. Decrease in accounts payable b. Loss on sale of investments c. Decrease in accounts receivable d. Depreciation expense
Which of the following should be added to net income in calculating net cash flow from operating activities using the indirect method? a.a decrease in accounts payable b.an increase in inventory c.preferred dividends declared and paid d.a decrease in accounts receivable
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