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. Cash Equivalents: Cash equivalents are highly liquid, short term investments, which could be held by a company for not more than three months from the purchase date. To Describe: The exception to the generalization, that transactions which involve merely purchases or sales of cash equivalents generally are not reported in a statement of cash flows.

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Answer 1

Question

Chapter 21, Problem 21.4Q

To determine

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.

Cash Equivalents: Cash equivalents are highly liquid, short term investments, which could be held by a company for not more than three months from the purchase date.

To Describe: The exception to the generalization, that transactions which involve merely purchases or sales of cash equivalents generally are not reported in a statement of cash flows.

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Answer 2

Question

Chapter 21, Problem 21.4Q

To determine

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.

Cash Equivalents: Cash equivalents are highly liquid, short term investments, which could be held by a company for not more than three months from the purchase date.

To Describe: The exception to the generalization, that transactions which involve merely purchases or sales of cash equivalents generally are not reported in a statement of cash flows.

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Answer 3

Question

Chapter 21, Problem 21.4Q

To determine

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.

Cash Equivalents: Cash equivalents are highly liquid, short term investments, which could be held by a company for not more than three months from the purchase date.

To Describe: The exception to the generalization, that transactions which involve merely purchases or sales of cash equivalents generally are not reported in a statement of cash flows.

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Answer 4

Question

Chapter 21, Problem 21.4Q

To determine

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.

Cash Equivalents: Cash equivalents are highly liquid, short term investments, which could be held by a company for not more than three months from the purchase date.

To Describe: The exception to the generalization, that transactions which involve merely purchases or sales of cash equivalents generally are not reported in a statement of cash flows.

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Answer 5

Chapter 21, Problem 21.4Q

To determine

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.

Cash Equivalents: Cash equivalents are highly liquid, short term investments, which could be held by a company for not more than three months from the purchase date.

To Describe: The exception to the generalization, that transactions which involve merely purchases or sales of cash equivalents generally are not reported in a statement of cash flows.

Answer 6

Chapter 21, Problem 21.4Q

To determine

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.

Cash Equivalents: Cash equivalents are highly liquid, short term investments, which could be held by a company for not more than three months from the purchase date.

To Describe: The exception to the generalization, that transactions which involve merely purchases or sales of cash equivalents generally are not reported in a statement of cash flows.

Answer 7

Chapter 21, Problem 21.4Q

To determine

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.

Cash Equivalents: Cash equivalents are highly liquid, short term investments, which could be held by a company for not more than three months from the purchase date.

To Describe: The exception to the generalization, that transactions which involve merely purchases or sales of cash equivalents generally are not reported in a statement of cash flows.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 21 - Effects of all cash flows affect the balances of...Ch. 21 - Prob. 21.2Q Ch. 21 - Prob. 21.3Q Ch. 21 - Prob. 21.4Q Ch. 21 - Prob. 21.5Q Ch. 21 - Prob. 21.6Q Ch. 21 - Prob. 21.7Q Ch. 21 - The sale of stock and the sale of bonds are...Ch. 21 - Does the statement of cash flows report only...Ch. 21 - Prob. 21.10Q

Solution Summary: The author explains the exception to the generalization that transactions which involve merely purchases or sales of cash equivalents are not reported in a statement.

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Chapter 21 Solutions