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accounting SoCF.txt

  1. What transactions are included in the operating section of the Statement of Cash Flows?
    Reciepts from revenues and payments for expenses.
  2. What transactions are included in the investing section of the Statement of Cash Flows?
    Receipts from sales of noncurrent assets (land, equipment, etc) and payments for purchasing noncurrent assets.
  3. What transactions would be included in the financing section of the Statement of Cash Flows?
    Receipts from issuing equity and debt securities and payments for treasury stock, dividends paid, and redemption of debt securities (i.e. bonds).
  4. What is the first adjustment to Net Income?
    Non-cash expenses are added. (i.e. depreciation expense, amortization)
  5. What is the second adjustment to Net Income?
    Gains and losses on disposal of assets are added or deducted.

    • Losses are added.
    • Gains are subtracted.
  6. What is the third adjustment to Net Income?
    Changes in in current operating assets and liabilities are added or deducted. Includes accounts like: accounts recievable, inventory, prepaid expenses, and accounts payable.
  7. An increase in accounts recievable would require you to __________ to/from net income.
    SUBTRACT
  8. A decrease in accounts recievable would require you to __________ to/from net income.
    ADD
  9. An increase in inventory would require you to ___________ to/from net income.
    SUBTRACT
  10. A decrease in inventory would require you to __________ to/from net income.
    ADD
  11. An increase in prepaid expenses would require you to ___________ to/from net income.
    SUBTRACT
  12. A decrease in prepaid expenses would require you to __________ to/from net income.
    ADD
Author
aalford
ID
8203
Card Set
accounting SoCF.txt
Description
Chapter 14 Review
Updated

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