Operating Activity: Operating activity is the first part of the cash flow statement. The main focuses of the operating activity on the
Financial Activity: Financial activity is the part of the cash flow statement. Financial activity involves the long term liability, borrowing and
Investing Activity: investing activity is the third part of the cash flow statement which gives the information related to the acquisition and disposal of the long term assets of the company such as land and building, investment and plant.
To Identify: Interest on borrowing is reported in the financial activities.
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Chapter 12 Solutions
Financial & Managerial Accounting: Information for Decisions w Access Card, 5th edition, ACC 211 & 212, Northern Virginia Community College
- One company might depreciate a new computer over three years while another company might depreciate the same model computer over five years...and both companies are right. True Falsearrow_forwardno chatgpAccumulated Depreciation will appear as a deduction within the section of the balance sheet labeled as Property, Plant and Equipment. True Falsearrow_forwardNo ai Depreciation Expense is shown on the income statement in order to achieve accounting's matching principle. True Falsearrow_forward
- no aiOne company might depreciate a new computer over three years while another company might depreciate the same model computer over five years...and both companies are right. True Falsearrow_forwardno ai An asset's useful life is the same as its physical life? True Falsearrow_forwardno ai Depreciation Expense reflects an allocation of an asset's original cost rather than an allocation based on the economic value that is being consumed. True Falsearrow_forward
- The purpose of depreciation is to have the balance sheet report the current value of an asset. True Falsearrow_forwardDepreciation Expense shown on a company's income statement must be the same amount as the depreciation expense on the company's income tax return. True Falsearrow_forwardDont use AI Give soln.arrow_forward
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