Statement of cash flows : This statement reports all the cash transactions which are responsible for inflow and outflow of cash and result of these transactions is reported as ending balance of cash at the end of reported period. Operating activities: Operating activities refer to the normal activities of a company to carry out the business. The examples for operating activities are purchase of inventory, payment of salary, sales, and others. Investing activities: Investing activities refer to the activities carried out by a company for acquisition of long term assets. The examples for investing activities are purchase of equipment, long term investment, sale of land, and others. Financing activities: Financing activities refer to the activities carried out by a company to mobilize funds to carry out the business activities. The examples for financing activities are purchase of bonds, issuance of common shares, and others. To Prepare: The statement of cash flows of Company R, using indirect method.

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Chapter 21, Problem 21.31E

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Statement of cash flows: This statement reports all the cash transactions which are responsible for inflow and outflow of cash and result of these transactions is reported as ending balance of cash at the end of reported period.

Operating activities: Operating activities refer to the normal activities of a company to carry out the business. The examples for operating activities are purchase of inventory, payment of salary, sales, and others.

Investing activities: Investing activities refer to the activities carried out by a company for acquisition of long term assets. The examples for investing activities are purchase of equipment, long term investment, sale of land, and others.

Financing activities: Financing activities refer to the activities carried out by a company to mobilize funds to carry out the business activities. The examples for financing activities are purchase of bonds, issuance of common shares, and others.

To Prepare: The statement of cash flows of Company R, using indirect method.

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v Qu B IUS Paragraph Arial 14px A v QUESTION 13 The indirect method for the preparation of the operating activities section of the statement of cash flows: A. Separately lists each major item of operating cash receipts. B. Must not be used in all circumstances. O C. Separately lists each major item of operating cash payments. O D. Reports net income and then adjusts it for items necessary to determine net cash provided or used by operating activities. QUESTION 14 Which section of the statement of cash flows is used to report the purchase of a building by issuing a 9-month note payable? OA. Operating activities. O B. Financing activities. C. Investing activities. Click Save and Submit to save and submit. Click Save All Answers to save all answers. II !!! >