Explanation Cash Flow Statement: The accounting statement that helps to maintain a record of all the cash inflows as well as the outflows of the company in a given period of time is known as a cash flow statement. It helps to estimate the balances of net cash, operating activities, investing activities and financing activities. Operating Activity: An activity that measures the flow of cash in the production process and delivery of goods as well as services is referred to as the operating activity. Investing Activity: The activity that includes the transactions relating to plant, machinery or other fixed assets and investment of debt or equity is referred to as the investing activity. Financing Activity: The activity with involves the cash flows related to the non-current liabilities and the owners’ equity is referred to as the financing activity. The list of cash receipts and payments given below is classified into various accounting activities: Cash receipt or payment Classification Explanation Cash payment to suppliers and employees Operating Activity Cash payment made is an operating activity as it involves an activity related to the net income. Cash payments for principal on debt Financing Activity Payment on debt is a type of paying of a liability. Thus, it is a type of financing activity. Cash receipts from customers Operating Activity Receipt of cash is an inflow of income. As it includes the direct cash flow, it is considered as an operating activity...

Intermediate Accounting - Myaccountinglab - Pearson Etext Access Card Student Value Edition

1st Edition

ISBN: 9780134047430

Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

Publisher: PEARSON

See similar textbooks

Concept explainers

Reporting Cash Flows

Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows fro…

Balance Sheet

A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the …

Financial Statements

Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It…

Owner's Capital

Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expect…

Videos

Question

Chapter 22, Problem 22.1BE

To determine

The type of activity; operating, investing or financing activities from the list of all cash receipts and payments.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 22, Problem 22.8MC

Chapter 22, Problem 22.2BE

Students have asked these similar questions

When a company incurs an expense but does not yet pay it, what is the entry?A. Debit Expense, Credit CashB. Debit Liability, Credit ExpenseC. Debit Expense, Credit LiabilityD. No entry needed help

When a company incurs an expense but does not yet pay it, what is the entry?A. Debit Expense, Credit CashB. Debit Liability, Credit ExpenseC. Debit Expense, Credit LiabilityD. No entry needed

Dont use ai What is the effect of writing off an uncollectible account under the allowance method?A. Increases net incomeB. No effect on total assetsC. Decreases revenueD. Increases expenses

Chapter 22 Solutions

Intermediate Accounting - Myaccountinglab - Pearson Etext Access Card Student Value Edition

Ch. 22 - Prob. 22.1Q Ch. 22 - Prob. 22.2Q Ch. 22 - Prob. 22.3Q Ch. 22 - Prob. 22.4Q Ch. 22 - Prob. 22.5Q Ch. 22 - How do firms reclassify gains and losses on the...Ch. 22 - Prob. 22.7Q Ch. 22 - Prob. 22.8Q Ch. 22 - Prob. 22.9Q Ch. 22 - Prob. 22.10Q

Knowledge Booster

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.

Similar questions

SEE MORE QUESTIONS

Recommended textbooks for you

Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Century 21 Accounting General Journal
Accounting
ISBN:9781337680059
Author:Gilbertson
Publisher:Cengage
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
Auditing: A Risk Based-Approach to Conducting a Q...
Accounting
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:South-Western College Pub
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:9781337679503
Author:Gilbertson
Publisher:Cengage