Solved

For Each of the Following Items, Indicate by Using the Appropriate

Question 158

Matching

For each of the following items, indicate by using the appropriate code letter, how the item should be reported in the statement of cash flows, using the direct method.

Premises:

Responses:

Decrease in accounts payable during a period.

Added in determining cash receipts from customers

Declaration and payment of a cash dividend.

Deducted in determining cash receipts from customers

Decrease in accounts receivable during a period.

Added in determining cash payments to suppliers

Depreciation expense.

Deducted in determining cash payments to suppliers

Conversion of bonds payable into common stock.

Cash outflow—investing activity

Decrease in merchandise inventory during a period.

Cash inflow—investing activity

Sale of equipment for cash at book value.

Cash outflow—financing activity

Issuance of preferred stock for cash.

Cash inflow—financing activity

Purchase of land for cash.

Significant noncash investing and financing activity

Loss on sale of a plant asset.

Is not shown

Premises:

Decrease in accounts payable during a period.

Declaration and payment of a cash dividend.

Decrease in accounts receivable during a period.

Depreciation expense.

Conversion of bonds payable into common stock.

Decrease in merchandise inventory during a period.

Sale of equipment for cash at book value.

Issuance of preferred stock for cash.

Purchase of land for cash.

Loss on sale of a plant asset.

Responses:

Added in determining cash receipts from customers

Deducted in determining cash receipts from customers

Added in determining cash payments to suppliers

Deducted in determining cash payments to suppliers

Cash outflow—investing activity

Cash inflow—investing activity

Cash outflow—financing activity

Cash inflow—financing activity

Significant noncash investing and financing activity

Is not shown

Correct Answer:

Premises:

Responses:

Decrease in accounts payable during a period.

Declaration and payment of a cash dividend.

Decrease in accounts receivable during a period.

Depreciation expense.

Conversion of bonds payable into common stock.

Decrease in merchandise inventory during a period.

Sale of equipment for cash at book value.

Issuance of preferred stock for cash.

Purchase of land for cash.

Loss on sale of a plant asset.

Related Questions

Q154: Towson Company prepared the tabulation below at

Q156: For each of the following items,

Q157: The three accounts shown below appear in

Q159: For each of the following items, indicate

Q160: Classify each of the following as a(n):

Q161: Assume the indirect method is used to

Q187: The operating activities section of the statement

Q203: How is it possible for a company

Q205: Sact Creek Company's most recent financial statements

Q207: Cash flows from operating activities can be

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

Scan the QR code to install the App and get 2 free unlocks

Unlock quizzes for free by uploading documents