What kinds of cash flows are reported as investing activities on the statement of cash flows?
What will be an ideal response?
Answers will vary.
The purchase and sale of long-term assets, as well as investments in other companies and loans made to other companies or individuals, are considered investing activities on the statement of cash flows.
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Which of the following journal entries would probably be made if the modified cash basis of accounting for warranties is in use for a sale made in 2016?
A) ?2016Warranty Expense XXEstimated Liability under Warranties XX B) ?2017Estimated Liability under Warranties XXCash XX C) ?2016Cash XXSales XXUnearned Warranty Revenue XX D) ?2017Warranty Expense XXCash XX
Sapphire Company reported the following information for the year 2014: Sales revenue of $280,000; cost of goods sold of $100,000; selling expenses of $40,000; administrative expenses of $35,000; depreciation of $25,000; interest expense of $8,000; and income tax expense of $28,000 . All sales were made for cash and all expenses (other than depreciation and bond premium amortization of $2,000)
were paid in cash. All current assets and current liabilities remained unchanged. How much cash was provided by operations for Sapphire Company during 2014? a. $44,000 b. $69,000 c. $67,000 d. $71,000
The Pareto principle is important to consider when an organization is
a. assessing whether to employ activity-based costing versus attribute-based costing. b. evaluating the number of activities that are value-added versus those that are non-value-added. c. deciding whether to offer a product in one color versus in ten colors. d. determining whether simultaneous engineering activities will be impacted by the "Rule of One."
Answer the following statements true (T) or false (F)
Conservatism, materiality, and disclosure are examples of constraining principles.