chapter 13 smartbook Flashcards
Financing activities include ______.
issuing new common stock
purchase of stock in another company
payment of cash dividends to stockholders
purchase of land for resale
issuing new common stock
payment of cash dividends to stockholders
When preparing a statement of cash flows under the direct method, ______ from a statement prepared using the indirect method.
the operating, investing and financial sections differ
only the investing and financing sections differ
only the operating activities section differs
only the operating activities section differs
The statement of cash flows ______.
focuses on activities that affect net income
answers the same questions that are answered by the statement of retained earnings
is optional for all public companies
is one of the required financial statements
is one of the required financial statements
Changes in noncash balance sheet accounts that directly affect net income are classified as ____________activities.
operating
Cardinal Company issues new common stock for $50,000. This transaction is a(n) ____________activity on the statement of cash flows.
financing
When using the ____________method to compute cash provided (used) by operating activities, U.S. GAAP and IFRS require the ______________method to be disclosed in a separate schedule accompanying the statement of cash flows.
direct; indirect
The statement of cash flows:
is not one of the required financial statements.
focuses on activities that affect the cash balance.
reports changes in net operating income.
answers the same questions that are answered by the balance sheet.
focuses on activities that affect the cash balance.
Operating activities include ______.
corporate income taxes payments
wage payments to employees
interest on notes receivable or notes payable
dividend payments to stockholders
corporate income taxes payments
wage payments to employees
interest on notes receivable or notes payable
