Managerial Accounting
3rd Edition
ISBN: 9780077826482
Author: Stacey M Whitecotton Associate Professor, Robert Libby, Fred Phillips Associate Professor
Publisher: McGraw-Hill Education
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Question
Chapter 12, Problem 6MC
To determine
Introduction:
Cash flow statements are the statements that determines the inflow and outflow of cash from three major activities that are carried out in a business i.e. operating activities, investing activities and financing activities.
To choose:
The correct option which states the activity that does not appear in ‘Financing Activities’ section of Cash Flow Statement.
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Check out a sample textbook solutionStudents have asked these similar questions
Which of the following items would not appear in thefinancing section of the statement of cash flows?a. The issuance of the company’s own stock.b. The repayment of debt.c. The payment of dividends.d. All of the above would appear in the financing sectionof the statement of cash flows.
Which of the following is not classified among the financing activities in a statement of cash flows?
a Long-term borrowing.
b Payment of dividends to stockholders.
c Short-term borrowing.
d Payment of interest to creditors.
Which of the following is included in the cash flows from financing activities section of the statement of cash flows?
O A. Interest received from borrowers.O B. Purchase of stock in another company.O C. Purchase of treasury stock.O D. Interest paid to lenders.
Chapter 12 Solutions
Managerial Accounting
Ch. 12 - Compare the purposes of the income statement, the...Ch. 12 - What information does the statement of cash flows...Ch. 12 - Prob. 3QCh. 12 - What are the major categories of business...Ch. 12 - Prob. 5QCh. 12 - Prob. 6QCh. 12 - Prob. 7QCh. 12 - Prob. 8QCh. 12 - Prob. 9QCh. 12 - Prob. 10Q
Ch. 12 - As a junior analyst, you are evaluating the...Ch. 12 - Prob. 12QCh. 12 - Prob. 13QCh. 12 - Prob. 14QCh. 12 - Prob. 15QCh. 12 - Prob. 1MCCh. 12 - Prob. 2MCCh. 12 - Prob. 3MCCh. 12 - Prob. 4MCCh. 12 - Prob. 5MCCh. 12 - Prob. 6MCCh. 12 - Prob. 7MCCh. 12 - Prob. 8MCCh. 12 - Prob. 9MCCh. 12 - Prob. 10MCCh. 12 - Prob. 1MECh. 12 - Prob. 2MECh. 12 - Prob. 3MECh. 12 - Prob. 4MECh. 12 - Prob. 5MECh. 12 - Prob. 6MECh. 12 - Prob. 7MECh. 12 - Prob. 8MECh. 12 - Prob. 9MECh. 12 - Interpreting Cash Flows from Operating, Investing,...Ch. 12 - Prob. 11MECh. 12 - Prob. 12MECh. 12 - Prob. 13MECh. 12 - Prob. 1ECh. 12 - Prob. 2ECh. 12 - Prob. 3ECh. 12 - Prob. 4ECh. 12 - Prob. 5ECh. 12 - Prob. 6ECh. 12 - Prob. 7ECh. 12 - Prob. 8ECh. 12 - Reporting and Interpreting Cash Flows from...Ch. 12 - Prob. 10ECh. 12 - Prob. 11ECh. 12 - Prob. 12ECh. 12 - Prob. 13ECh. 12 - Prob. 14ECh. 12 - Prob. 15ECh. 12 - Prob. 16ECh. 12 - Prob. 17ECh. 12 - Prob. 18ECh. 12 - Prob. 19ECh. 12 - Prob. 20ECh. 12 - Prob. 21ECh. 12 - Prob. 22ECh. 12 - (Supplement 12B) Preparing a Statement of Cash...Ch. 12 - Prob. 1GAPCh. 12 - Prob. 2GAPCh. 12 - Prob. 3.1GAPCh. 12 - Prob. 3.2GAPCh. 12 - Prob. 4.1GAPCh. 12 - Prob. 4.2GAPCh. 12 - Prob. 5GAPCh. 12 - Preparing and Interpreting a Statement of Cash...Ch. 12 - Prob. 7.1GAPCh. 12 - Prob. 7.2GAPCh. 12 - Prob. 1GBPCh. 12 - Prob. 2GBPCh. 12 - Prob. 3.1GBPCh. 12 - Prob. 3.2GBPCh. 12 - Prob. 4.1GBPCh. 12 - Prob. 4.2GBPCh. 12 - Prob. 5GBPCh. 12 - Prob. 6GBP
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Similar questions
- Which of these transactions would be part of the financing section? A. inventory purchased for cash B. sales of product, for cash C. cash paid for purchase of equipment D. dividend payments to shareholders, paid in casharrow_forwardWould there ever be activities that relate to operating, investing, or financing activities that would not be reported in their respective sections of the statement of cash flows? Explain. If a company had any such activities, how would they be reported in the financial statements, if at all?arrow_forwardWhich of the following financial statements should be prepared first? A. Balance Sheet B. Income Statement C. Retained Earnings Statement D. Statement of Cash Flowsarrow_forward
- On which financial statement would the Dividends account appear? A. Balance Sheet B. Income Statement C. Retained Earnings Statement D. Statement of Cash Flowsarrow_forwardWhich of the following statements is false? A. Noncash activities should be reported in accrual basis financial statements. B. Net cash flow from operating activities relates to normal business operations. C. Net income usually equals net cash flow from operating activities. D. The statement of cash flows is an essential part of the basic financial statements.arrow_forwardWhat function does the statement of cash flows serve, as one of the four basic financial statements?arrow_forward
- Why is using the direct method to prepare the operating section of the statement of cash flows more challenging for accountants than preparing the balance sheet, income statement, and retained earnings statement?arrow_forward14. Which of the following would be classified as a financing activity on a statement of cash flows? Sale of a loan receivable Payment of interest to a creditor Payment of a bond payable Declaration and distribution of a stock dividendarrow_forwardWhich is not a required component of a complete set of financialstatements under PAS 1? A. Statement of changes in equityB. Statement of retained earningsC. Notes to financial statementsD. Statement of cash flowsarrow_forward
- Which of the following transaction is considered an investing activity when preparing a Cash flow Statement? A. Issuing ordinary shares B. Payment to creditors C. Purchase of non-current assets D.Redemption of ordinary shares.arrow_forwardWhich of the following statements concerning the balance sheet is TRUE? a. Ob. C. Operating cash flow (OCF) should be the cash available to creditors. Assets on the balance sheet must be listed in the order in which they are repaid. Changes in depreciation expense affect a firm's cash position. d. The balance sheet shows the prices at which each individual investor purchased the company's stocks and bonds.arrow_forwardOn the statement of cash flows, which of the following items will affect both financing activities and operating activities? O a. Collection of loans to other entities. O b. Payment of dividends. O c. Redemption of debt. O d. Issuance of equity securities.arrow_forward
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