Fundamentals Of Financial Accounting
6th Edition
ISBN: 9781260159516
Author: PHILLIPS
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 1, Problem 6MC
Which of the following statements regarding the statement of
- a. The statement of cash flows separates
cash inflows and outflows into three major categories: operating, investing, and Financing. - b. The ending cash balance shown on the statement of cash flows must agree with the amount shown on the
balance sheet at the end of the same period. - c. The total increase or decrease in cash shown on the statement of cash flows must agree with the “bottom line” (net income or net loss) reported on the income statement.
- d. The statement of cash flows covers a period of time.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Which of the following statements regarding the statementof cash flows is false?a. The statement of cash flows separates cash inflows andoutflows into three major categories: operating, investing, and financing. b. The ending cash balance shown on the statement ofcash flows must agree with the amount shown on thebalance sheet at the end of the same period.c. The total increase or decrease in cash shown on thestatement of cash flows must agree with the “bottomline” (net income or net loss) reported on the incomestatement.d. The statement of cash flows covers a period of time
Which of the following statements regarding the statement of cash flows is false?A. The statement of cash flow separates cash inflow and outflows into three major categories: operating, investing and financingB. The ending cash balance shown on the statement of cash flows must agree with the amount shown on the balance sheet at the end of the same periodC. The total increase or decrease in cash shown on the statement of cash flows must agree with the bottom line (net income or net loss) reported on the income statementD. The statement of cash flows covers a period of time
When preparing a statement of cash flows, cash equivalents are subtracted from cash in order to calculate the net change in cash during a period. True False
Chapter 1 Solutions
Fundamentals Of Financial Accounting
Ch. 1 - Define accounting.Ch. 1 - Prob. 2QCh. 1 - Briefly distinguish financial accounting from...Ch. 1 - The accounting process generates financial reports...Ch. 1 - Explain what the separate entity assumption means...Ch. 1 - List the three main types of business activities...Ch. 1 - What information should be included in the heading...Ch. 1 - What are the purposes of (a) the balance sheet,...Ch. 1 - Explain why the income statement, statement of...Ch. 1 - Briefly explain the difference between net income...
Ch. 1 - Describe the basic accounting equation that...Ch. 1 - Describe the equation that provides the structure...Ch. 1 - Describe the equation that provides the structure...Ch. 1 - Prob. 14QCh. 1 - Prob. 15QCh. 1 - Prob. 16QCh. 1 - Briefly define what an ethical dilemma is and...Ch. 1 - Prob. 18QCh. 1 - Prob. 1MCCh. 1 - Which of the following is true regarding the...Ch. 1 - Which of the following is false regarding the...Ch. 1 - Which of the following regarding retained earnings...Ch. 1 - Prob. 5MCCh. 1 - Which of the following statements regarding the...Ch. 1 - Prob. 7MCCh. 1 - Which of the following is true? a. FASB creates...Ch. 1 - Which of the following would not be a goal of...Ch. 1 - Prob. 10MCCh. 1 - Prob. 1MECh. 1 - Matching Definitions with Terms or Abbreviations...Ch. 1 - Matching Definitions with Terms Match each...Ch. 1 - Matching Financial Statement Items to Balance...Ch. 1 - Matching Financial Statement Items to Balance...Ch. 1 - Matching Financial Statement Items to Balance...Ch. 1 - Matching Financial Statement Items to Balance...Ch. 1 - Matching Financial Statement Items to the Basic...Ch. 1 - Matching Financial Statement Items to the Four...Ch. 1 - Reporting Amounts on the Statement of Cash Flows...Ch. 1 - Prob. 11MECh. 1 - Preparing a Statement of Retained Earnings Stone...Ch. 1 - Relationships among Financial Statements Items...Ch. 1 - Prob. 14MECh. 1 - Relationships among Financial Statements Items...Ch. 1 - Preparing an Income Statement, Statement of...Ch. 1 - Reporting Amounts on the Four Basic Financial...Ch. 1 - Reporting Amounts on the Four Basic Financial...Ch. 1 - Preparing a Balance Sheet DSW, Inc., is a designer...Ch. 1 - Completing a Balance Sheet and Inferring Net...Ch. 1 - Labeling and Classifying Business Transactions The...Ch. 1 - Preparing an Income Statement and Inferring...Ch. 1 - Preparing an Income Statement Home Realty,...Ch. 1 - Prob. 8ECh. 1 - Preparing an Income Statement and Balance Sheet...Ch. 1 - Analyzing and Interpreting an Income Statement...Ch. 1 - Prob. 11ECh. 1 - Matching Cash Flow Statement Items to Business...Ch. 1 - Preparing an Income Statement. Statement of...Ch. 1 - Interpreting the Financial Statements Refer to...Ch. 1 - Reporting Amounts on the Four Basic Financial...Ch. 1 - Evaluating Financial Statements Refer to CP1-3....Ch. 1 - Preparing an Income Statement, Statement of...Ch. 1 - Prob. 2PACh. 1 - Reporting Amounts on the Four Basic Financial...Ch. 1 - Evaluating Financial Statements Refer to PA1-3....Ch. 1 - Preparing an Income Statement and Balance Sheet...Ch. 1 - Interpreting the Financial Statements Refer to PB...Ch. 1 - Reporting Amounts on the Four Basic Financial...Ch. 1 - Evaluating Financial Statements Refer to PB1-3....Ch. 1 - Finding Financial Information Answer the following...Ch. 1 - Comparing Financial Information Refer to the...Ch. 1 - Prob. 5SDCCh. 1 - Prob. 6SDCCh. 1 - Prob. 1CC
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
- Explain the difference between the two methods used to prepare the operating section of the statement of cash flows. How do the results of these two approaches compare?arrow_forwardProvide the missing piece of information for the following statement of cash flows puzzle.arrow_forwardIn a completed worksheet, a. the debit column contains the cash inflows. b. the debit column contains the cash outflows. c. the credit column contains the cash inflows. d. the credit column contains only operating cash flows. e. None of these.arrow_forward
- Which of the following items is reported on a statement of cash flows prepared using the direct method?a. Bad debts expense.b. Increase in accounts receivable.c. Depreciation expense.d. Cash payments to suppliers.arrow_forwardThe sum of the cash generated or used by each section of the statement of the cash flows should be equal the difference between the beginning and ending balance of the cash and cash equivalent accounts. True or false?arrow_forwardWhich of the following sentences regarding the statement of cash flows is false?a. The statement of cash flows describes the company’s cash receipts and cash paymentsfor a period of time.b. The statement of cash flows reconciles the beginning and ending cash balances shownon the balance sheet.c. The statement of cash flows reports cash flows in three categories: cash flows frombusiness activities, cash flows from investing activities, and cash flows from financingactivities.d. The statement of cash flows may be used by creditors to assess the creditworthiness of acompany.arrow_forward
- The accuracy of the statement of cash flows can be verified by computing the change in the balance of the a.cash and cash equivalent accounts. b.asset and liability accounts. c.revenue account. d.equity account.arrow_forwardThe difference between the sources (in nows) and uses (out nows) of cash represents the net cash flow during the reporting period. True or false? How is this information very important?arrow_forwardWhich one of the following statements best describes a cash outflow in relation to the statement of cash flows? A: A cash outflow is an expense. B: A cash outflow may have been paid or not. C: A cash outflow is associated to both revenue and capital expenditure. D: None of the abovearrow_forward
- How to treat interest expense when preparing a Statement of Cash flows? Interest paid is reported as a cash outflow in the operating activities section on the statement of cash flows prepared under the indirect method. Answer: False. But why?arrow_forwardExplain why cash outflows during the period for purchasesand salaries are not specifically reported on a statement ofcash flows prepared using the indirect method.arrow_forwardThe statement of cash flows reports cash receipts (inflows) and cash payments (outflows) for a period. True or False True Falsearrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage Learning
Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
The KEY to Understanding Financial Statements; Author: Accounting Stuff;https://www.youtube.com/watch?v=_F6a0ddbjtI;License: Standard Youtube License