ABC company had the following transactions during the month of April 2020. They would like you, their accountant, to prepare a cash flow statement. Before preparing the statement, you first need to determine whether the items below results in a cash inflow or outflow in the statement of cash flows. Second, you are required to determine whether the transaction is an operating, investing, or financing activity by placing an √ in the appropriate columns.

ABC company had the following transactions during the month of April 2020. They would like you, their accountant, to prepare a cash flow statement. Before preparing the statement, you first need to determine whether the items below results in a cash inflow or outflow in the statement of cash flows. Second, you are required to determine whether the transaction is an operating, investing, or financing activity by placing an √ in the appropriate columns.

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter16: Financially Troubled Ventures: Turnaround Opportunities?

Section: Chapter Questions

Problem 1cM

See similar textbooks

Similar questions

View Policies Current Attempt in Progress Financing activities involve O cash receipts from sales of goods and services. O long-term liability and owners' equity items. O lending money to other entities and collecting on those loans. O acquiring and disposing of productive long-lived assets. Save for Later Attempts: 0 of 1 used Submit Answer
The purchase of equipment financed by a long-term notes payable is an example of ________. A non-cash investing and financing activity B investing activity C operating activity D financing activity
4. _______ is the act of paying out includes money paid out to run abusiness, cash expenditure and etc.A. Disbursements C. PaymentB. Issuance of capital D. Payout
Cash and balances with the Central Bank Due from banks Loans and advances and financing to customers Investment securities Investments in a subsidiary Property and equipment Goodwill Other assets Classify it into current assets and non curent assets?
1. which of the following transactions will result in the increase and decrease in liability? a. payment of loan by installmentb. borrowed money from the bankc. issued a promissory note in payment of a liabilityd. request for an extension of the date of payment 2. a statement which shows where the money of the business is obtained and used? a. statement of financial positionb. statement of cash flowsc. cash budgetd. statement of revenues and expenses
The valuation of a promise to receive cash in the future at present valueon the financial statements of a company is valid because of theaccounting concept of: a. entityb. materialityc. going concernd. neutrality
Increase in notes receivable is reported as ?cash flow from "operating" activities اخترأحد الخيارات a. False O b. True O
Under ASPE the receipt of interest on loans would be reported on a statement of cash flows under www.OA. investing activities OB. operating activities OC. financing activities OD. no activities because interest received on loans would not be reported on a statement of cash flows
Paying off bonds payable is reported on the statement of cash flows undera. noncash investing and financing activities.b. financing activities.c. operating activities.d. investing activities.
Interest payments to creditors are reported in a statement of cash flows as Select one: a. An operating activity b. An investing activity c. A borrowing activity d. A financing activity
Q3 Classify the below Transactions according to Cash Flow Section • Sale of non-current asset Payment for rent Purchase of inventory Repayment of a bank loan • Depreciation • Cash received from debtors Payments to suppliers
Cash paid to purchase long-term investments would be reported in a. a separate schedule of noncash investing and financing activities b. the investing activities section of the statement of cash flows c. the financing activities section of the statement of cash flows d. the operating activities section of the statement of cash flow