TRUE-FALSE
12) Operating, Financing and Investing is the typical order of
the sections on a statement of cash flows.
13) The operating activities
section of the statement of cash flows includes activities that
create revenue or expenses for the entity’s business.
14) The financing activities
section of the statement of cash flows includes paying dividends
and making payments on long-term liabilities.
15) Most public companies use the
indirect method to prepare their statement of cash
flows.
1) The income from continuing operations helps investors make
predictions about the company's past performance.
2) Gains and losses on the sale
of plant assets are also reported as discontinued
operations.
3) Extraordinary items are
unusual and infrequent in nature.
ANSWER
19) Kevin Company sold equipment for $7990 cash. The book value
of the asset was $4770. How should this transaction be reported on
the Statement of Cash Flows?
Answer
12) True
13) True
14) True
15) True
16) False
17) False
18) True
19) Cash recd of $7990 as Inflow under Investing Activity &
Loss of $3220 to be added back to Income under Operating
Activity
