Question

Indicate whether the following is true or false. If the answer is false, explain why. 1....

Indicate whether the following is true or false. If the answer is false, explain why.

1. Purchases and sales of securities are never reported as investing activities in a statement of cash flows. TRUE or FALSE

2. Purchases and sales of securities are always reported as financing activiies in a statement of cash flows. TRUE or FALSE

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

1) False
Purchases and sales of securities are reported as investing activities in a statement of cash flows.
When Purchases and sales of securities are not treated as cash equivalent and trading securities then they are treated cash flow from investing activities.
2) False
Purchases and sales of securities are always reported as Investing activiies in a statement of cash flows.
Financing activities in a statement of cash flows accounts for inflows and outflows of debt issuance and raising capital activities rather than Purchases and sales of securities, these are accounted under cash flow from investing activities

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
Is the following TRUE or FALSE? If any of the problem is FALSE, explain why. 1....
Is the following TRUE or FALSE? If any of the problem is FALSE, explain why. 1. Purchases and sales of securities are always reported as financing activities in a statement of cash flows. TRUE or FALSE 2. Unrealized gains and losses are never included in other comprehensive income for securities that are classified as available for sale. TRUE or FALSE 3. If an investment is accounted for under the equity method, the investor increases investment income and the investment account...
Indicate whether the following statement is true or false and then EXPLAIN why. Under monopoly price...
Indicate whether the following statement is true or false and then EXPLAIN why. Under monopoly price is greater than average revenue but lower than marginal revenue.
Indicate whether each of the following events would cause an inflow or an outflow of cash...
Indicate whether each of the following events would cause an inflow or an outflow of cash and whether it would affect the investing (I) or financing (F) activities on the statement of cash flows. (a) Repayments of long-term debt (b) Sales of marketable securities (c) Repurchase of company’s common stock (d) Sales of common stock to investors (e) Purchase of equipment (f) Payment of dividends (g) Purchase of marketable securities (h) Borrowing from bank (i) Sale of building (j) Acquisition...
Indicate whether the following statement is TRUE or FALSE and explain your answer: An increase in...
Indicate whether the following statement is TRUE or FALSE and explain your answer: An increase in the price of electric cars will lead, other things equal, to a decrease in the equilibrium price of cars using petrol.
TRUE OR FALSE: 1. Major investing and financing activities that do not involve cash do not...
TRUE OR FALSE: 1. Major investing and financing activities that do not involve cash do not have to be reported as part of the statement of cash flows. 2. The payment of interest on bonds is classified as a cash outflow from operating activities on the statement of cash flows. 3. A healthy company typically shows positive cash flows in the financing activities section of the statement of cash flows. 4. In general, the cash flow from operating activities is...
True or False 1. The approach to preparing the cash flow statement relies on the following...
True or False 1. The approach to preparing the cash flow statement relies on the following rearrangement of the balance sheet equation: Change in cash = Change in (Liabilities + Stockholders' Equity + Noncash Assets). 2. Major investing and financing activities that do not involve cash do not have to be reported as part of the statement of cash flows. 3. In the decline phase, the company continues to enjoy positive operating cash flows but stops spending cash on investing...
TRUE / FALSE + (explanation) Please answer whether a statement is true or false and give...
TRUE / FALSE + (explanation) Please answer whether a statement is true or false and give a 1-2 sentence explanation of why this is the case. 1.1 Firms do not reap the benefits of their positive externalitiesso they always produce too little. 1.2 In a static game, Nash Equilibrium are always subgame perfect. 1.3 Risk averse individuals never prefer a lottery over a sure bet. 1.4 Product differentiation makes consumers and producers better off. - Thank you!
Please write whether the statement is true or false, and if false please explain why it...
Please write whether the statement is true or false, and if false please explain why it is. “The more charges you put together in a region of space, the stronger the electric field gets.” “Electric field vectors never cross.” “Electric field lines always have to be straight.” “Electric field vectors always have to be straight.” “The motion of a charged particle in a uniform electric field is always a straight line.” “A charged particle in an electric field always moves...
Indicate whether the following statement is TRUE or FALSE and explain your answer: If one player...
Indicate whether the following statement is TRUE or FALSE and explain your answer: If one player is the leader in a game it means that s/he has the first move in the game. The key thing is that this move can be observed by the follower before making his/her own decision, otherwise it would be a simultaneous move game that cannot be solved by backwards induction.
1.How are purchases and sales reported on the statement of cash flows? 2.“Depreciation is an integral...
1.How are purchases and sales reported on the statement of cash flows? 2.“Depreciation is an integral part of cash flows statement”. Explain what it means. 3.A company used cash for both operating and investing activities, but had a positive cash flow from financing activities. What does this cash flow pattern suggest about this company?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT