Question

In: Accounting

Which of the following is NOT an example of a transaction that would appear in the...

Which of the following is NOT an example of a transaction that would appear in the financing section of the statement of cash flows?

Select one:

a. Repayment of principal amount of long-term note

b. Payment of interest expense on note

c. Selling shares of common stock

d. Purchasing treasury stock

e. None of the above

Solutions

Expert Solution

Answer: Option (b) is correct

Explanation:

Payment of interest on note is added to the Net Profit under cash flows from operating activities. It is not shown under financing activity, as the repayment of loan/note (which is shown under financing activity) includes the amount relating to the payment of interest.

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Which of the following is NOT an example of a transaction that would appear in the...
Which of the following is NOT an example of a transaction that would appear in the financing section of the statement of cash flows? Select one: a. Selling shares of common stock b. None of the above c. Payment of interest expense on note d. Repayment of principal amount of long-term note e. Purchasing treasury stock
Which of the following is an example of economic exposure but not an example of transaction...
Which of the following is an example of economic exposure but not an example of transaction exposure? A decrease in the peso's value decreases a U.S. firm's dollar value of peso receivables An increase in the pound's value increases a U.S. firm's cost of British pound payables. An increase in the dollar's value impacts a U.S. firm's domestic sales because foreign competitors are able to increase their sales to U.S. customers. A decrease in the Swiss franc's value decreases the...
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
1. Which of the following events is not a transaction that would be recorded in a...
1. Which of the following events is not a transaction that would be recorded in a company's accounting records? A. The purchase of equipment for cash B. The purchase of equipment on account C. Investment of additional cash in the business by the owner D. The Death of a key executive 2. On the statement of financial portion, how are assets and liabilities normally presented? A. Assets are presented in order of liquidity: liabilities are presented in the order in...
If you paid for the candy bar with a credit card, how would the transaction appear....
If you paid for the candy bar with a credit card, how would the transaction appear. What would be debited and what would be credited from the point of view of the buyer and the seller?
Which of the following accounts would not appear on a schedule of cost of goods manufactured?...
Which of the following accounts would not appear on a schedule of cost of goods manufactured? Multiple Choice Depreciation on factory equipment. Raw materials inventory. Wages payable. Indirect labor. Factory insurance expired.
Which of the following accounts would not appear as an asset on a manufacturer's balance sheet?...
Which of the following accounts would not appear as an asset on a manufacturer's balance sheet? Work in process Overhead Raw Materials Finished goods
Which of the following costs would appear on the income statements for both a merchandiser and...
Which of the following costs would appear on the income statements for both a merchandiser and a manufacturer? Your answer: Direct labor Cost of goods manufactured Direct materials Operating expenses Selling and administrative expenses are subtracted from cost of goods sold to obtain gross profit. Your answer: Yes No Which of the following could be found on the income statement of a service company? Your answer: Rent expense Cost of goods manufactured Cost of goods sold Manufacturing overhead
17. Which of the following would appear on the statement of financial position as a current...
17. Which of the following would appear on the statement of financial position as a current liability? a. a probable loss in the amount of $4 million from an ongoing lawsuit b. a possible loss in the amount of $4 million from an ongoing lawsuit c. a probable loss from an ongoing lawsuit, the amount of which is not yet determinable d. a lawsuit for $4 million for which the likelihood of loss is remote 18. Chastain Park Entertainment paid...
Which of the following items appear in the current account and which appear in the capital...
Which of the following items appear in the current account and which appear in the capital and financial account? a. U.S. purchases of assets abroad: current account/capital and finance account b. U.S. services imports: current account/capital and finance account c. Foreign purchases of assets in the United States: current account/capital and finance account d. U.S. goods exports: current account/capital and finance account e. U.S. net investment income: current account/capital and finance account
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT