Which of the following would be considered a "source" of cash for purposes of constructing a statement of cash flows?

Multiple Choice

Dividends paid to the company's own shareholders.

Increase in prepaid expenses

Decrease in accounts payable

Increase in accrued lists.

Solutions

Expert Solution

Option (d) - Increase in accrued liabilities

Analysis is as follows:

Accrued liabilities amount has increased while comparing the same with the value at the beginning of the period. By this we can analyse that the liability to pay has increased because the additional cash/fund has been taken from the respective party and agreed to pay later at determined date. As a result there is an inflow of cash (source of cash) to the entity.

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Which of the following is a source of cash that would appear on the statement of...

Which of the following is a source of cash that would appear on the statement of cash flows? decrease in notes payable increase in gross fixed assets increase in accrued expenses

Which of the following changes is considered a source of cash when preparing a statement of cash flow?

Which of the following changes is considered a source of cash when preparing a statement of cash flow? An increase in property, plant, and equipment A decrease in accounts payable A decrease in inventories An increase in accounts receivable A decrease in accrued wages

In a statement of cash flows, which of the following would be classified as an investing...

In a statement of cash flows, which of the following would be classified as an investing activity? Multiple Choice The sale of the company's own common stock for cash. The sale of equipment. Interest paid to a lender. The issuance of bonds payable.

Which of the following questions would not be answered by the statement of cash flows? a....

Which of the following questions would not be answered by the statement of cash flows? a. Where did the cash come from during the period? b. What was the cash used for during the period? c. Were all the cash expenditures of benefit to the company during the period? d. What was the change in the cash balance during the period?

Which item would be classified as a source of cash on a company's statement of cash...

Which item would be classified as a source of cash on a company's statement of cash flows? Decrease in accounts payable Increase in accounts receivable Depreciation expense Increase in inventory Which of the following Accounting Standards Codification (ASC) Topics covers US accounting for translating a company's foreign financial statements into their home currency? Topic 320 Topic 820 Topic 830 Topic 815 Lenders, creditors and investors usually pay additional attention to which of the following financial statements? Statement of cash flows...

Which of the following can be considered a source of cash by the organization: A. Depreciation...

Which of the following can be considered a source of cash by the organization: A. Depreciation B. Payment of dividends C. Decrease in a current liability D. Increase in a non cash current asset.

Which of the following cash flows are not considered in the calculation of the terminal cash-flow...

Which of the following cash flows are not considered in the calculation of the terminal cash-flow for a capital investment proposal? Tax effect on Capital Loss/Gain Book value of the asset cost of issuing new bonds to finance the new project. net working capital. Salvage price of the asset And please explain as well

The statement of cash flows would not report which one of the following items? a. stock...

The statement of cash flows would not report which one of the following items? a. stock dividends b. purchase of capital stock c. redemption of long-term debt d. issuance of long-term debt

which of the following would be considered a product cost for external financial reporting purposes? A)...

which of the following would be considered a product cost for external financial reporting purposes? A) cost of a warehouse used to store finished goods. b) cost of guided public tours through the company's facilities c) cost of travel necessary to sell the manufactured product d) cost of sand spread on the factory floor to absorb oil from manufacturing machines

Which of the following is not considered a relevant concern in determining incremental cash flows for...

Which of the following is not considered a relevant concern in determining incremental cash flows for a new product? [CH-10] a. The final disposal of a product, including any tax effects related to the sale of the product. b. Revenues from the existing product that would be lost as a result of some customers switching to the new product. c. Shipping and installation costs associated with preparing the machine to be used to produce the new product. d. The cost...

Subjects