Rarely would the cash flows from operating activities as

Assignment Help Accounting Basics

Reference no: EM13596081

1) If a business issued bonds payable in exchange for land, the transaction would be reported in a separate schedule on the statement of cash flows.
a. true
b. false

2) Rarely would the cash flows from operating activities, as reported on the statement of cash flows, be the same as the net income reported on the income statement.
a. true
b. false

3) Using the indirect method, if land costing $85,000 was sold for $145,000, the amount reported in the financing activities section of the statement of cash flows would be $85,000.
a. true
b. false

4) Ruben Company purchased $100,000 of Evans Company bonds at 100. Ruben later sold the bonds at $104,500 plus $500 in accrued interest. The journal entry to record the sale of the bonds would be:
a. Debit: Cash $105,000; Credit: Investment in Bonds $100,000; Gain on Sale of Investments $4,500 and Interest Revenue $500
b. Debit: Cash $105,000; Credit: Investment in Bonds $100,000 and Gain on Sale of Investments $5,000
c. Debit: Cash $105,000; Credit: Investment in Bonds $104,500 and Interest Revenue $500
d. Debit: Cash $104,500 and Interest Receivable $500; Credit: Investment in Bonds $100,000, Gain on Sale of Investments $4,500 and Interest Revenue $500

5) If land costing $145,000 was sold for $205,000, the $60,000 gain on the sale would be added to net income in of the operating activities section of the statement of cash flows (prepared by the indirect method).
a. true
b. false

Reference no: EM13596081

Questions Cloud

The half-life for the radioactive decay of c-14 is 5730 : the half-life for the radioactive decay of c-14 is 5730 years.a how long will it take for 20 of the c-14 atoms in a

In preparing the cash flows from operating activities : 1 in preparing the cash flows from operating activities section of the statement of cash flows by the indirect method

Wayne terrago controller for robbin industries was : wayne terrago controller for robbin industries was reviewing production cost reports for the year. one amount in these

A mathematics teacher collects old books a student asked : a mathematics teacher collects old books. a student asked him how many books he had. he said if i divide the books into

Rarely would the cash flows from operating activities as : 1 if a business issued bonds payable in exchange for land the transaction would be reported in a separate schedule on

Reconcile any difference between the net operating income : whitman company has just completed its first year of operations. the companys absorption costing income statement for

This is placed in contact with a semipermeable membrane and : 125 mg of a protein is dissolved in 10 ml of water. the density of this solution is 0.789 gml. this is placed in

A foreign company whose sales will not affect thompsons : thompson company had the following results of operations for the past year sales 16000 units at 10 160000 direct

The owner of flaherty accounting services wants to earn a : the owner of flaherty accounting services wants to earn a margin on tax returns of 15000 during march. if 200 returns

User Account

All Pages