Question

Any one of the question need to be answer. i' ll be appriciate i yoou can...

Any one of the question need to be answer. i' ll be appriciate i yoou can help me find both.

34) How should a loss in from the sale of an investment in another company’s stock be reported in a statement of cash flows using the indirect method?

A) In operating activities as a deduction from income

B) In operating activities as an assiteion to income

C) investment activities as a reduction of the cash inflow from the sale

D) In investment activities as a cash outflow

35) in a statement of cash flows (using indirect approach for operating activities) a decrease in accounts receivable should be prepared as a(n)

A) Addition to net income

B) Outflow in financing activities

C) Deduction from net income

D) Inflow in investing activities

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer

34.

In Operating Activities as an addition to Income

When we Calculated Net Income we must have deducted Loss so while preparing Cash Flow statement we will add back Loss in Operating Activities.

35.

Addition to Net Income

Increase/Decrease in Current Assets and Current Liabilities comes in Operating Activities.

Increase in Current Assets and Decrease in Current Liability gets deducted from Net Income While Calculating Cash flow from Operating Activities.

And

Decrease in Current Assets and Increase in Current Liability gets added to Net Income While Calculating Cash flow from Operating 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
In a statement of cash flows (using the indirect approach for operating activities), an increase in...
In a statement of cash flows (using the indirect approach for operating activities), an increase in inventories should be presented as a(n) 1) Outflow of cash. 2) Inflow and outflow of cash. 3) Addition to net income. 4) Deduction from net income.
1. The purchase of treasury stock will have what impact on the statement of cash flows?...
1. The purchase of treasury stock will have what impact on the statement of cash flows? A. Cash inflow from financing activities B. Cash outflow from financing activities C. Cash inflow from investing activities D. Cash outflow from investing activities 2. Cash inflows or outflows from investing activities would involve all of the following except: A. The proceeds from the sale of equipment B. The purchase of buildings C. The receipt of interest income on short-term investments D. The purchase...
On the statement of cash flows, a decrease in merchandise inventory is shown as: Group of...
On the statement of cash flows, a decrease in merchandise inventory is shown as: Group of answer choices A. a deduction from net income in the cash flows from operating activities section B. an addition to net income in the cash flows from operating activities section C. a cash inflow in the cash flows from financing activities section D. a cash outflow in the cash flows from financing activities section
Net Sales $8,436,500 Cost of Sales 3,374,600 Gross Profit 5,061,900 Operating, selling, and general and administrative...
Net Sales $8,436,500 Cost of Sales 3,374,600 Gross Profit 5,061,900 Operating, selling, and general and administrative expenses 2,530,950 Operating profit 2,530,950 Interest expense, net 180,650 Income before income taxes 2,350,300 Income tax expense 470,060 Net Income $1,880,240 james estimates that net sales will increase by 6% in the year 2018. Cost of Sales are estimated to be 42% of net sales, Operating, selling, general and administrative expenses are expected to be 29% of net sales, Interest expense is expected to...
Chapter 14: Classifying items on the indirect statement of cash flows Learning Objective 1, 2 Destiny...
Chapter 14: Classifying items on the indirect statement of cash flows Learning Objective 1, 2 Destiny Corporation is preparing its statement of cash flows by the indirect method. Destiny has the following items for you to consider in preparing the statement: a.  Increase in accounts payable b. Payment of dividends c.  Decrease in accrued liabilities d. Issuance of common stock e.  Gain on sale of building f.  Loss on sale of land g.  Depreciation expense h. Increase in merchandise inventory i.   Decrease in accounts receivable j.  Purchase...
Which of the following statements is true? Investment in another company's common stock is classified as...
Which of the following statements is true? Investment in another company's common stock is classified as a cash outflow from financing activities in the statement of cash flows. Repayment of long-term debt is classified as a cash outflow from investing activities in the statement of cash flows. Losses on the sale of long-term assets are an adjustment reported in the operating activities section of the statement of cash flows under the indirect method. Dividends paid are classified as a cash...
1. Land costing $78,600 was sold for $92,800 cash. The gain on the sale was reported...
1. Land costing $78,600 was sold for $92,800 cash. The gain on the sale was reported on the income statement as other revenue. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land? a.$171,400 b.$78,600 c.$92,800 d.$14,200 2. A building with a book value of $35,143 is sold for $56,651 cash. Using the indirect method, this transaction should be shown on the statement of cash flows as an increase of...
SLO 4: Interpret the statement of cash flow and demonstrate the benefit to users. The following...
SLO 4: Interpret the statement of cash flow and demonstrate the benefit to users. The following activities took place at Mark's Corporation during their recent year. As the Accountant, you are responsible for recording the impact of these activities on the Statement of Cash Flow. Instructions: Of the activities listed below, you are to indicate if they represent a cash inflow (+) or outflow (-) and whether each is an Operating (O), Investing (I), or Financing (F) activity. Indicate your...
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...
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...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT