Statement of cash flows : The statement of cash flows is one of the financial statements, which provides information about the cash inflows and cash outflows of an enterprise’s operating, investing, and financing activities which occurred during the period. Following are three categories of cash flows reported in the statement of cash flows: 1. Operating activity: Operating activity refers to those set of activities that generates cash inflows and cash outflows to determine the net income from business operations. 2. Investing activity: Investing activity of the cash flow statement deals with the acquisition and sales of the long-term investments and non operating investments like property, machinery loans receivables, and marketable securities. 3. Financing activity: Financing activity is the category of cash flow statement that deals with flow of cash between the business and investors/creditors (excluding trade creditors). For example payment of dividends, issuance of preferred stock . To identify : The item that is not considered operating cash flow in the statement of cash flows.

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Answer 1

Question

Chapter 4, Problem 5CPA

To determine

Statement of cash flows:

The statement of cash flows is one of the financial statements, which provides information about the cash inflows and cash outflows of an enterprise’s operating, investing, and financing activities which occurred during the period.

Following are three categories of cash flows reported in the statement of cash flows:

1. Operating activity: Operating activity refers to those set of activities that generates cash inflows and cash outflows to determine the net income from business operations.

2. Investing activity: Investing activity of the cash flow statement deals with the acquisition and sales of the long-term investments and non operating investments like property, machinery loans receivables, and marketable securities.

3. Financing activity: Financing activity is the category of cash flow statement that deals with flow of cash between the business and investors/creditors (excluding trade creditors). For example payment of dividends, issuance of preferred stock.

To identify: The item that is not considered operating cash flow in the statement of cash flows.

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Answer 2

Question

Chapter 4, Problem 5CPA

To determine

Statement of cash flows:

The statement of cash flows is one of the financial statements, which provides information about the cash inflows and cash outflows of an enterprise’s operating, investing, and financing activities which occurred during the period.

Following are three categories of cash flows reported in the statement of cash flows:

1. Operating activity: Operating activity refers to those set of activities that generates cash inflows and cash outflows to determine the net income from business operations.

2. Investing activity: Investing activity of the cash flow statement deals with the acquisition and sales of the long-term investments and non operating investments like property, machinery loans receivables, and marketable securities.

3. Financing activity: Financing activity is the category of cash flow statement that deals with flow of cash between the business and investors/creditors (excluding trade creditors). For example payment of dividends, issuance of preferred stock.

To identify: The item that is not considered operating cash flow in the statement of cash flows.

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Answer 3

Question

Chapter 4, Problem 5CPA

To determine

Statement of cash flows:

The statement of cash flows is one of the financial statements, which provides information about the cash inflows and cash outflows of an enterprise’s operating, investing, and financing activities which occurred during the period.

Following are three categories of cash flows reported in the statement of cash flows:

1. Operating activity: Operating activity refers to those set of activities that generates cash inflows and cash outflows to determine the net income from business operations.

2. Investing activity: Investing activity of the cash flow statement deals with the acquisition and sales of the long-term investments and non operating investments like property, machinery loans receivables, and marketable securities.

3. Financing activity: Financing activity is the category of cash flow statement that deals with flow of cash between the business and investors/creditors (excluding trade creditors). For example payment of dividends, issuance of preferred stock.

To identify: The item that is not considered operating cash flow in the statement of cash flows.

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Answer 4

Question

Chapter 4, Problem 5CPA

To determine

Statement of cash flows:

The statement of cash flows is one of the financial statements, which provides information about the cash inflows and cash outflows of an enterprise’s operating, investing, and financing activities which occurred during the period.

Following are three categories of cash flows reported in the statement of cash flows:

1. Operating activity: Operating activity refers to those set of activities that generates cash inflows and cash outflows to determine the net income from business operations.

2. Investing activity: Investing activity of the cash flow statement deals with the acquisition and sales of the long-term investments and non operating investments like property, machinery loans receivables, and marketable securities.

3. Financing activity: Financing activity is the category of cash flow statement that deals with flow of cash between the business and investors/creditors (excluding trade creditors). For example payment of dividends, issuance of preferred stock.

To identify: The item that is not considered operating cash flow in the statement of cash flows.

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Answer 5

Chapter 4, Problem 5CPA

To determine

Statement of cash flows:

The statement of cash flows is one of the financial statements, which provides information about the cash inflows and cash outflows of an enterprise’s operating, investing, and financing activities which occurred during the period.

Following are three categories of cash flows reported in the statement of cash flows:

1. Operating activity: Operating activity refers to those set of activities that generates cash inflows and cash outflows to determine the net income from business operations.

2. Investing activity: Investing activity of the cash flow statement deals with the acquisition and sales of the long-term investments and non operating investments like property, machinery loans receivables, and marketable securities.

3. Financing activity: Financing activity is the category of cash flow statement that deals with flow of cash between the business and investors/creditors (excluding trade creditors). For example payment of dividends, issuance of preferred stock.

To identify: The item that is not considered operating cash flow in the statement of cash flows.

Answer 6

Chapter 4, Problem 5CPA

To determine

Statement of cash flows:

The statement of cash flows is one of the financial statements, which provides information about the cash inflows and cash outflows of an enterprise’s operating, investing, and financing activities which occurred during the period.

Following are three categories of cash flows reported in the statement of cash flows:

1. Operating activity: Operating activity refers to those set of activities that generates cash inflows and cash outflows to determine the net income from business operations.

2. Investing activity: Investing activity of the cash flow statement deals with the acquisition and sales of the long-term investments and non operating investments like property, machinery loans receivables, and marketable securities.

3. Financing activity: Financing activity is the category of cash flow statement that deals with flow of cash between the business and investors/creditors (excluding trade creditors). For example payment of dividends, issuance of preferred stock.

To identify: The item that is not considered operating cash flow in the statement of cash flows.

Answer 7

Chapter 4, Problem 5CPA

To determine

Statement of cash flows:

The statement of cash flows is one of the financial statements, which provides information about the cash inflows and cash outflows of an enterprise’s operating, investing, and financing activities which occurred during the period.

Following are three categories of cash flows reported in the statement of cash flows:

1. Operating activity: Operating activity refers to those set of activities that generates cash inflows and cash outflows to determine the net income from business operations.

2. Investing activity: Investing activity of the cash flow statement deals with the acquisition and sales of the long-term investments and non operating investments like property, machinery loans receivables, and marketable securities.

3. Financing activity: Financing activity is the category of cash flow statement that deals with flow of cash between the business and investors/creditors (excluding trade creditors). For example payment of dividends, issuance of preferred stock.

To identify: The item that is not considered operating cash flow in the statement of cash flows.

Answer 8

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