A company borrows $10,000 and signs a 90-day non-trade note payable. In preparing a statement of cash flows (indirect method), this event would be reflected as a(n)
a. addition adjustment to net income in the cash flows from operating activities section.
b. cash outflow from investing activities.
c. cash inflow from investing activities.
d. cash inflow from financing activities.
Answer: D
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Accounting Chapter 23
- Foxx Corp.'s comparative balance sheet at December 31, 2013 and 2012 reported accumulated depreciation balances of $850,000 and $600,000, respectively. Property with a cost of $50,000 and a carrying amount of $38,000 was the only property sold in 2013. Depreciation charged to operations in 2013 was
- A company acquired a building, paying a portion of the purchase price in cash and issuing a mortgage note payable to the seller for the balance.
- How should significant noncash transactions be reported in the statement of cash flows according to FASB Statement No. 95?
- Which of the following is shown on a statement of cash flows?
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- Which of the following is false concerning the statement of cash flows?
- When using the indirect method to prepare the operating section of a statement of cash flows, which of the following is deducted from net income to compute cash provided by/used by operating activities?
- When using the indirect method to prepare the operating section of a statement of cash flows, which of the following is added to net income to compute cash provided by/used by operating activities?
- Which of the following statements is correct?
- When preparing a statement of cash flows, the following are used for which method in determining cash flows from operating activities? Gross Accounts Receivable Net Accounts Receivable
- When preparing a statement of cash flows, a decrease in prepaid insurance during a period would require which of the following adjustments in determining cash flows from operating activities? Indirect Method Direct Method
- When preparing a statement of cash flows, an increase in accounts payable during a period would require which of the following adjustments in determining cash flows from operating activities? Indirect Method Direct Method
- In determining net cash flow from operating activities, a decrease in accounts payable during a period
- When preparing a statement of cash flows, a decrease in accounts receivable during a period would cause which one of the following adjustments in determining cash flow from operating activities? Direct Method Indirect Method
- When preparing a statement of cash flows (indirect method), an increase in ending inventory over beginning inventory will result in an adjustment to reported net earnings because
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- The amortization of bond premium on long-term debt should be presented in a statement of cash flows (using the indirect method for operating activities) as a(n)
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- When preparing a statement of cash flows (indirect method), which of the following is not an adjustment to reconcile net income to net cash provided by operating activities?
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- An increase in inventory balance would be reported in a statement of cash flows using the indirect method (reconciliation method) as a(n)
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