
Concept explainers
Statement of
Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company.
Cash flows from operating activities: These refer to the cash received or cash paid in day-to-day operating activities of a company.
Cash flow from investing activities: This section of cash flows statement provides information concerning about the purchase and sale of capital assets by the company.
Cash flow from financing activities: This section of cash flows statement provides information about the
To classify: The given transactions based on operating, investing and financing activity of the statement of cash flows.

Want to see the full answer?
Check out a sample textbook solution
Chapter 11 Solutions
Financial Accounting
- Which principle requires expenses to be recorded in the same period as the revenues they help generate? A) Cost PrincipleB) Matching PrincipleC) Revenue Recognition PrincipleD) Full Disclosure Principlearrow_forwardNorthfield Appliances reported annual sales revenue of $2,750,000. During the year, accounts receivable increased from a $78,000 beginning balance to a $93,000 ending balance. Accounts payable increased from a $62,000 beginning balance to a $89,000 ending balance. How much is cash received from customers for the year? A. $3,130,000 B. $3,135,000 C. $2,735,000 D. $3,100,000 Right answerarrow_forwardWhat is the effective cost of trade credit under the credit terms of 3/10, net 45? Assume 365 days in a year for your calculations. Round your answers to two decimal places. Do not round intermediate calculations.arrow_forward
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeManagerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
