Tag Archives: accounting

Accounting?

Posted on October 27, 2010 by admin| 1 Comment

The sale of land for cash would be classified as a cash inflow from an investing activity.The sale of land for cash would be classified as a cash inflow from an investing activity.
True or false? A statement of cash flows indicates the sources and uses of cash during a period. True or False?

Cash provided by operating activities fails to take into account that a company must invest in new fixed assets just to maintain its current level of operations. T or F?

Using the indirect method, an increase in accounts payable during a period is deducted from net income in calculating cash provided by operations.
T or F? A primary objective of the statement of cash flows is to show the income or loss on investing and financing transactions.
T or F? Free cash flow equals cash provided by operations less capital expenditures and cash dividends. T or F?
The statement of cash flows is a required statement that must be prepared along with an income statement, balance sheet, n retained stme

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Accounting???????????

Posted on October 26, 2010 by admin| 1 Comment

Trent Company prepared the tabulation below at December 31, 2004.
Net Income…………………………..$250,000

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation expense, $30,000 ________
Increase in accounts receivable, $60,000 ________
Decrease in inventory, $13,000 ________
Amortization of patent, $4,000 ________
Increase in accounts payable, $3,600 _______
Decrease in interest receivable, $4,000 _______
Increase in prepaid expenses, $6,000 _______
Decrease in income taxes payable, $1,500 ________
Gain on sale of land, $8,000 _______
Net cash provided (used) by operating activities _______
Instructions
Show how each item should be reported in the statement of cash flows. Use parentheses for deductions.

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Indirect Method Accounting?????

Posted on October 25, 2010 by admin| 2 Comments

For each of the following items, indicate by using the appropriate code letter, how the item should be reported in the statement of cash flows, using the indirect method.

A.Added to net income
B.Deducted from net income
C.Cash outflow—investing activity
D.Cash inflow—investing activity
E.Cash outflow—financing activity
F.Cash inflow—financing activity
G.Significant noncash investing and financing activity

____1.Decrease in accounts payable during a period

____2.Declaration and payment of a cash dividend.

____3.Loss on sale of land.

____4.Decrease in accounts receivable during a period.

____5.Redemption of bonds for cash.

____6.Proceeds from sale of equipment at book value.

____7.Issuance of common stock for cash.

____8.Purchase of a building for cash.

____9.Acquisition of land in exchange for common stock.

____10.Increase in merchandise inventory during a period.

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accounting purchase?

Posted on October 24, 2010 by admin| 2 Comments

Smith Company purchased land in 2003 for $400. The land was sold in 2006 for $500. As a result of the sale:

a. cash flow from operating activities would increase by $100.
b. net income would increase by $100.
c. cash flow from operating activities would increase by $500.
d. b and c.

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in accounting, The K company sold land for $60,000 in cash. The land was origanally purchased (Details Below)?

Posted on October 9, 2010 by admin| 3 Comments

for $40,000, and at the time of the sale, $15,000 was still owed to First Bank on that purchased. After the sale, the K company paid off the loan to First Bank. What is the effect of the sale and the payoff of the loan on the accounting equation?

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