Question

Entity A prepares its Statement of Cash Flows in accordance with US GAAP using the indirect...

Entity A prepares its Statement of Cash Flows in accordance with US GAAP using the indirect method. Indicate the reporting of the following transaction or event by major category: Taxes payable increased during the year

Cash Flows From Operating Activities–Add to Net Income

Cash Flows From Operating Activities–Deduct from Net Income

Cash Flows From Investing Activities

Cash Flows From Financing Activities

Non-cash

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Your required asnwer is option A i.e. Cash Flows From Operating Activities–Add to Net Income

Explanation:

Tax payable is current liability and therefore Increase in tax payable means increase in current liability and therefore it will be added in net income in cash flow from operating activities.


I hope this clear your doubt.

Feel free to comment if you still have any query or need something else. I'll help asap.

Do give a thumbs up if you find this helpful.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Entity A prepares its Statement of Cash Flows in accordance with US GAAP using the indirect...
Entity A prepares its Statement of Cash Flows in accordance with US GAAP using the indirect method. Indicate the reporting of the following transaction or event by the major categories on the statement: Entity A's income statement reveals depreciation expense of $10,000. Cash Flows From Operating Activities–Add to Net Income Cash Flows From Operating Activities–Deduct from Net Income Cash Flows From Investing Activities Cash Flows From Financing Activities Non-cash Entity A prepares its Statement of Cash Flows in accordance with...
Olsen Company prepares its statement of cash flows using the indirect method. Indicate whether the item...
Olsen Company prepares its statement of cash flows using the indirect method. Indicate whether the item would be added to net income (increase), deducted from net income (decrease), or has no effect on net income to determine net cash flows from operating activities. Depreciation expense, which is included on the income statement. None of the options listed All of the options listed Decrease Increase No effect
Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities....
Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities. Net income for the 2018 fiscal year was $659,000. Depreciation and amortization expense of $94,000 was included with operating expenses in the income statement. The following information describes the changes in current assets and liabilities other than cash: Decrease in accounts receivable $ 29,000 Increase in inventories 9,900 Increase prepaid expenses 9,200 Increase in salaries payable 10,700 Decrease in income taxes payable 18,000 Required:...
If a company is using the indirect method to prepare the statement of cash flows, identify...
If a company is using the indirect method to prepare the statement of cash flows, identify where an increase in the accounts receivable account should be reported: Multiple Choice An increase in cash flows from operating activities An increase in cash flows from investing activities A decrease in cash flows from operating activities A decrease in cash flows from investing activities An increase in cash flows from financing activities
On the statement of cash flows prepared by the indirect method, a $50,000 gain on the...
On the statement of cash flows prepared by the indirect method, a $50,000 gain on the sale of investments would be a.deducted from dividends declared in converting the dividends declared to the cash flows from financing activities related to dividends. b.deducted from net income in converting the net income reported on the income statement to cash flows from operating activities. c.added to dividends declared in converting the dividends declared to the cash flows from financing activities related to dividends. d.added...
1- When preparing a statement of cash flows using the indirect method, each of the following...
1- When preparing a statement of cash flows using the indirect method, each of the following should be classified as an operating cash flow except: Multiple Choice An increase in accounts receivable. A decrease in accounts payable. Proceeds from the disposal of a long-term asset with no gain or loss. An increase in prepaid expenses. A decrease in accrued expenses payable. 2- Marshland Company is preparing the company's statement of cash flows for the fiscal year just ended. The following...
State the section(s) of the statement of cash flows prepared by the indirect method (operating activities,...
State the section(s) of the statement of cash flows prepared by the indirect method (operating activities, investing activities, financing activities, or not reported) and the amount that would be reported for each of the following transactions: Note: Only consider the cash component of each transaction. Use the minus sign to indicate amounts that are cash out flows, cash payments, decreases in cash, or any negative adjustments. If your answer is not reported in an amount box does not require an...
1) On an indirect method statement of cash​ flows, a decrease in inventory would​ be: A.reflected...
1) On an indirect method statement of cash​ flows, a decrease in inventory would​ be: A.reflected in the investing activities section B.deducted from net income C.netted against any decreases in accounts payable D.added to net income 2) Sometimes income and cash flow follow different patterns. True False 3)Cash means more than just cash on hand and cash in the bank. Highly​ liquid, shortminus−term investments that are easily convertible into cash are​ called: A.cash equivalents B.accounts receivable C.promissory notes D.common shares...
Which of the following methods of reporting cash flows provided by operating activities does the Financial...
Which of the following methods of reporting cash flows provided by operating activities does the Financial Accounting Standards Board recommend? A. The indirect method B. The direct method C. Either the indirect method or the direct method D. Neither the indirect method not the direct method In preparing cash flows provided by operating activities using the indirect method, which of the following is not deducted from net income? A. Decreases in current liability balances B. Increases in current asset balances...
Question text Statement of Cash Flows (Indirect Method) Use the following information regarding the Hamilton Corporation...
Question text Statement of Cash Flows (Indirect Method) Use the following information regarding the Hamilton Corporation to prepare a statement of cash flows using the indirect method: Accounts payable decrease $3,000 Accounts receivable increase 10,000 Wages payable decrease 9,000 Amortization expense 19,000 Cash balance, January 1 31,000 Cash balance, December 31 2,000 Cash paid as dividends 6,000 Cash paid to purchase land 110,000 Cash paid to retire bonds payable at par 65,000 Cash received from issuance of common stock 45,000...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT