far 17 a 112021

  1. Acquiring and disposing of property, plant, and equipment and other productive assets (but not materials in inventory) held for or used in the production of goods and services are ----------------------------.
    Acquiring and disposing of property, plant, and equipment and other productive assets (but not materials in inventory) held for or used in the production of goods and services are investing activities.
  2. ------------------------------- are those that concern noncurrent liability and shareholders’ equity items. Bonds are a noncurrent liability.
    Financing activities are those that concern noncurrent liability and shareholders’ equity items. Bonds are a noncurrent liability.
  3. Acquiring and disposing of property, plant, and equipment and other productive assets (but not materials in inventory) held for or used in the production of goods and services are ------------------------------.
    Acquiring and disposing of property, plant, and equipment and other productive assets (but not materials in inventory) held for or used in the production of goods and services are investing activities.
  4. A loss on the sale of a building is a noncash item because, although it decreased net income, it did not decrease cash. Thus, the loss is added to net income to include it in the determination of cash flows from ---------------------------------------.
    A loss on the sale of a building is a noncash item because, although it decreased net income, it did not decrease cash. Thus, the loss is added to net income to include it in the determination of cash flows from operating activities.
  5. Amortization of an intangible asset, such as a patent, is a noncash item that is added to net income for determining cash flows from -------------------------------.
    Amortization of an intangible asset, such as a patent, is a noncash item that is added to net income for determining cash flows from operating activities.
  6. -------------------------- are those that concern noncurrent liability and shareholders’ equity items.
    Financing activities are those that concern noncurrent liability and shareholders’ equity items.
  7. Depreciation is added to net income for determining ---------------------------- cash flows because it is subtracted during the determination of net income but has no effect on cash.
    Depreciation is added to net income for determining operating activity cash flows because it is subtracted during the determination of net income but has no effect on cash.
  8. Depreciation is added to ---------------------- for determining operating activity cash flows because it is subtracted during the determination of net income but has no effect on cash.
    Depreciation is added to net income for determining operating activity cash flows because it is subtracted during the determination of net income but has no effect on cash.
  9. A decrease in accounts receivable implies that cash collections exceeded sales. Therefore, the decrease should be added to -------------------------.
    A decrease in accounts receivable implies that cash collections exceeded sales. Therefore, the decrease should be added to net income.
  10. provide the proper classification, using the indirect method

    Purchase of equipment
    Investing
  11. provide the proper classification, using the indirect method

    Bond redemption
    Financing
  12. provide the proper classification, using the indirect method

    Sale of building
    Investing
  13. provide the proper classification, using the indirect method

    Loss on sale of building
    Operating - Add to net income
  14. provide the proper classification, using the indirect method

    Patent amortization
    Operating - Add to net income
  15. provide the proper classification, using the indirect method

    Decrease in wages payable
    Operating - Subtract from net income
  16. provide the proper classification, using the indirect method

    Purchase of treasury stock
    Financing
  17. provide the proper classification, using the indirect method

    Issuance of bonds for land
    Noncash investing and financing
  18. provide the proper classification, using the indirect method

    Decrease in wages payable
    operating - Subtract from net income
  19. provide the proper classification, using the indirect method

    Depreciation
    Operating - Add to net income
  20. -------------------------- include acquiring and disposing of productive assets, such as equipment.
    Investing activities include acquiring and disposing of productive assets, such as equipment.
  21. Cash flows from purchases, sales, and maturities of available-for-sale securities are from ----------------------------.
    Cash flows from purchases, sales, and maturities of available-for-sale securities are from investing activities.
  22. -------------------------------- are all transactions and other events that are not financing or investing activities.
    Operating activities are all transactions and other events that are not financing or investing activities.
  23. provide the proper classification, 

    Purchased equipment for $30,000
    investing activity
  24. provide the proper classification, 

    Sold available-for-sale securities for $7,000
    investing activity
  25. provide the proper classification, 

    Paid income taxes of $40,000
    Operating activity
  26. provide the proper classification, 

    Issued 40,000 shares of common stock, $2.50 par
    Financing activity
  27. provide the proper classification, 

    Paid $2,000 interest
    Operating activity
  28. provide the proper classification, 

    Paid $10,000 cash dividends to shareholders
    Financing Activity
  29. provide the proper classification, 

    Received $1,500 interest
    Operating activity
  30. provide the proper classification, 

    Sold land for $17,000
    investing activity
  31. provide the proper classification, 

    Paid $7,000 to vendors for inventory
    Operating activity
  32. provide the proper classification, 

    Purchased treasury stock for $20,000
    Financing activity
  33. provide the proper classification, 

    Paid income taxes of $40,000
    Operating activity
  34. provide the proper classification, 

    Paid $2,000 interest
    Operating activity
  35. provide the proper classification, 

     Received $1,500 interest
    Operating activity
Author
Joens1313
ID
354060
Card Set
far 17 a 112021
Description
far 17 a 112021
Updated