Homework Help Question & Answers

Which of the following is incorrect about the statement of cash flows? The indirect method may...

Which of the following is incorrect about the statement of cash flows? The indirect method may be used to report cash provide

Which of the following is incorrect about the statement of cash flows? The indirect method may be used to report cash provided by operations. O The direct method may be used to report cash provided by operations. The statement shows the cash provided (used) for three categories of activity. The operating section is the last section of the statement. e Textbook and Media Attempts: 2 of 3 used Save for Later Submit Answer
0 0
Next > < Previous
ReportAnswer #1

Answer : C = The Statement shows the cash provided / ( Used ) for three categories of activity.

>> Statement of cash flow shows the cash provided ( used) by

a) Operating Activity.

b) Financing Activity.

c) Investing Activity.

Know the answer?
Add Answer of:
Which of the following is incorrect about the statement of cash flows? The indirect method may...
Your Answer: Your Name: What's your source?
Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • 13. Which of the following statements is correct about the statement of cash flows? a. The...

    13. Which of the following statements is correct about the statement of cash flows? a. The direct method starts with net income. b. The direct method is more consistent with the primary purpose of the statement of cash flows. c. The direct method should be described in the notes when the statement is prepared using the indirect method. d. The direct method is favored by the FASB, and is therefore the most used in practice.

  • Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the...

    Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement for the current year was $216,000. Depreciation recorded on equipment and a building amounted to $64,600 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year $54,000 68,470 135,000 7,510 60,320 8,690 Beginning of Year Cash Accounts receivable (net) Inventories Prepaid expenses Accounts payable (merchandise creditors) Salaries payable a. Prepare...

  • Differentiate between the direct method and indirect method of the statement of cash flows by dis...

    Differentiate between the direct method and indirect method of the statement of cash flows by discussing the details of each.

  • Specialty Auto Parts Company uses the indirect method to prepare its statement of cash flows. Refer...

    Specialty Auto Parts Company uses the indirect method to prepare its statement of cash flows. Refer to the following information for 2018: Net cash provided by operating activities: $102,000 Net cash used for investing activities: S(113,500) Net cash provided by financing activities: $17,000 If the cash balance at the beginning of the year was $13,400, what is the ending cash balance? O A. $11,500 OB. $13,400 OC. $18,900 OD. $5,500

  • Which of the following is true regarding the statement of cash flows and IFRS? Cash and...

    Which of the following is true regarding the statement of cash flows and IFRS? Cash and cash equivalents are defined differently under IFRS than under GAAP. Under IFRS most companies choose to use the direct method of reporting cash flows from operating activities. Companies preparing a complete set of financial statements under IFRS may exclude the statement of cash flows if the cash flow activity is reported in the notes to the financial statements. Under IFRS noncash investing and financing...

  • The following information is taken from the operating section of the statement of cash flows (direct...

    The following information is taken from the operating section of the statement of cash flows (direct method) of Battery Builders, Inc.: Collections from customers Payments to suppliers for purchases Payments for operating expenses Payments for income taxes Cash provided by operating activities $28,000 (13,000) (9,000) (4,000) 2,000 The following information is obtained from the income statement of Battery Builders Net income Depreciation expense Gain on sale of equipment Write-off of intangibles $4,000 4,000 2,000 1,000 In addition, the following information...

  • We were unable to transcribe this image2. Prepare a statement of cash flows using the indirect...

    We were unable to transcribe this image2. Prepare a statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with minus sign.) GOGGLE COMPANY Statement of Cash Flows For the Year Ended December 31 Cash flows provided by operating activities: Adjustments to reconcile net income to cash provided by operating activities Changes in current assets and current liabilities Cash flows used in investing activities Cash flows provided by financing activities Net change in cash Cash,...

  • Statement of Cash Flows – Indirect Method

    The following balances are available for Chrisman Company:December 312010 2009Cash $ 8,000 $ 10,000Accounts receivable 20,000 15,000Inventory 15,000 25,000Prepaid rent 9,000 6,000Land 75,000 75,000Plant and equipment 400,000 300,000Accumulated depreciation (65,000) (30,000)Totals $ 462,000 $ 401,000Accounts payable $ 12,000 $ 10,000Income taxes payable 3,000 5,000Short-term notes payable 35,000 25,000Bonds payable 75,000 100,000Common stock 200,000 150,000Retained earnings 137,000 111,000Totals $ 462,000 $ 401,000Bonds were retired during 2010 at face value, plant and equipment were acquired for cash, and common stock was issued...

  • On the Statement of Cash Flows, cash receipts from the sale of common stock of your...

    On the Statement of Cash Flows, cash receipts from the sale of common stock of your company to investors are reported in the operating activities section. O investing activities section. financing activities section. O schedule of noncash investing and financing activities. Question 29 (2 points) On the statement of cash flows using the indirect method, patent amortization expense will O be added to net income in the operating section. be deducted from net income in the operating section. appear as...

  • *prepare a statement of cash flows. Use the direct method of reporting cash

    *prepare a statement of cash flows. "Use the direct method" of reporting cashflows from operating activities; include the reconciliation of cash flows from operating activities.

Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.