Managerial Accounting, Student Value Edition (5th Edition)
Managerial Accounting, Student Value Edition (5th Edition)
5th Edition
ISBN: 9780134067179
Author: Karen W. Braun, Wendy M. Tietz
Publisher: PEARSON
bartleby

Videos

Textbook Question
Book Icon
Chapter 13, Problem 1QC

(Learning Objective 1) Which of the following is not one of the activities found on the statement of cash flows?

  1. a. Administrative activities
  2. b. Financing activities
  3. c. Investing activities
  4. d. Operating activities
Expert Solution & Answer
Check Mark
To determine

To identify: The activity which is not one of the activities found on the statement of cash flows.

Answer to Problem 1QC

Option a. The activities which are not one of the activities found on the statement of cash flows are administrative activities.

Explanation of Solution

a.

Administrative activities: This is the correct option because administrative activities are not taken into account while preparing the cash flow statement. The cash flow statement includes operating, investing and financing activities only.

b.

Financing activities: The activities which are associated with the issuance of shares, payment of loans are termed as financing activities. These activities are a part of the cash flow statement. Thus, this option is incorrect.

c.

Investing activities: This option is incorrect as the investing activities are not among those activities which are not included in cash flow statement. Investing activities deal with the sale and purchase of the fixed assets of the company and these are part of cash flow statement.

d.

Operating activities: The activities which involve the day to day operations like sale and purchase of goods or rendering of services are inculcated in operating activities. Operating activities are primarily included while making the statement of cash flows. Thus, this option is incorrect.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Question 6 During 2019, Bitsincoins Corporation had EBIT of $100,000, a change in net fixed assets of $400,000, an increase in net current assets of $100,000, an increase in spontaneous current liabilities of $400,000, a depreciation expense of $50,000, and a tax rate of 30%. Based on this information, what is Bitsincoin's free cash flow? (3 marks)
Question 4 Waterfront Inc. wishes to borrow on a short-term basis without reducing its current ratio below 1.25. At present its current assets and current liabilities are $1,600 and $1,000 respectively. How much can Waterfront Inc. borrow? (5 marks)
discus extensivery source of bussines finances  requaments  not less than 4 pages font size 12 spacing 1.5 roman times references must be less thhan 5

Chapter 13 Solutions

Managerial Accounting, Student Value Edition (5th Edition)

Knowledge Booster
Background pattern image
Accounting
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.
Recommended textbooks for you
Text book image
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Text book image
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning
Consolidated financial statements; Author: The Finance Storyteller;https://www.youtube.com/watch?v=DTFD912ZJQg;License: Standard Youtube License