Question

In: Accounting

9. Cash payments for insurance Financing activities include transactions that affect long−term liabilities and stockholder's equity...

9. Cash payments for insurance Financing activities include transactions that affect long−term liabilities and stockholder's equity on the balance sheet.

T/F

Solutions

Expert Solution

True.

Financing activities are those which affect the capital structure of the entity.

So the transactions which affect stock holders equity such as issue of common shares for cash, purchase of treasury stock for cash etc will be shown as financing activities of the cash flow statement.

Issue of long term debt is also a financing activity.

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Cash flows from financing activities include all but one of the following: Cash payments on the...
Cash flows from financing activities include all but one of the following: Cash payments on the principal of long-term debt. Cash proceeds from a bank loan. Buying and selling bonds or stock of other firms. Cash purchases of treasury stock.
i am currently studying long-term liabilities and am confused between the equity financing and bond financing....
i am currently studying long-term liabilities and am confused between the equity financing and bond financing. what are the pros and cons of each financing?
1. Provide a flowchart of the cycle for Auditing the Financing/Investing Process: Long-Term Liabilities, Stockholders' Equity,...
1. Provide a flowchart of the cycle for Auditing the Financing/Investing Process: Long-Term Liabilities, Stockholders' Equity, and Income Statement Accounts. Prepare an audit program. Describe the cycle and include any risks involved with this cycle.
1. In terms of auditing the financing/investing process: long-term liabilities, stockholders' equity, and income statement accounts:...
1. In terms of auditing the financing/investing process: long-term liabilities, stockholders' equity, and income statement accounts: Describe the cycle and include any risks that may be involved.
Choose Operating, Investing, Financing activities, or None for the following statements 1.Cash settlement of a long-term...
Choose Operating, Investing, Financing activities, or None for the following statements 1.Cash settlement of a long-term note payable 2.Sale of PP&E for cash 3.Repurchase of the treasury stock using cash 4.Purchase of patent in exchange for a long-term note payable 5.Increase in accounts receivable
The three sections of the cash flow statement include operating activities, financing activities, and investing activities....
The three sections of the cash flow statement include operating activities, financing activities, and investing activities. The investing activities show funds that are flowing into the business which are generated by the primary business activity of the company. This is why investing activities are considered to be a report of the “lifeblood of the company”. Select one: True False
Ratio of Liabilities to Stockholders' Equity and Ratio of Fixed Assets to Long-Term Liabilities Recent balance...
Ratio of Liabilities to Stockholders' Equity and Ratio of Fixed Assets to Long-Term Liabilities Recent balance sheet information for two companies in the food industry, Santa Fe Company and Madrid Company, is as follows (in thousands): Santa Fe Madrid Net property, plant, and equipment $634,720 $816,800 Current liabilities 257,307 599,208 Long-term debt 587,116 588,096 Other long-term liabilities 206,284 228,704 Stockholders' equity 256,270 321,820 a. Determine the ratio of liabilities to stockholders' equity for both companies. Round to one decimal place....
Ratio of Liabilities to Stockholders' Equity and Ratio of Fixed Assets to Long-Term Liabilities Recent balance...
Ratio of Liabilities to Stockholders' Equity and Ratio of Fixed Assets to Long-Term Liabilities Recent balance sheet information for two companies in the food industry, Santa Fe Company and Madrid Company, is as follows (in thousands): Santa Fe Madrid Net property, plant, and equipment $743,280 $574,700 Current liabilities 331,320 466,878 Long-term debt 687,534 413,784 Other long-term liabilities 241,566 160,916 Stockholders' equity 300,100 226,430 a. Determine the ratio of liabilities to stockholders' equity for both companies. Round to one decimal place....
Assets Liabilities and Equity Cash $ 25,000 Accounts payable $ 25,000 Accounts receivable 156,000 Long-term debt...
Assets Liabilities and Equity Cash $ 25,000 Accounts payable $ 25,000 Accounts receivable 156,000 Long-term debt 103,000 Inventory 79,000 Common stock ($7 par; 21,000 3,000 shares outstanding) Plant and equipment 190,000 Additional paid-in capital 155,000 Retained earnings 146,000 $450,000 $450,000 Construct a new balance sheet showing the impact of a two-for-one split. If the current market price of the stock is $50, what is the price after the split? Round the par value and the market price after the split...
Companies are required by GAAP to report investing and financing activities that do not affect cash...
Companies are required by GAAP to report investing and financing activities that do not affect cash flows in a separate schedule (or at the bottom of the statement of cash flows). Why do you think a company is required to prepare this schedule? What importance might these transactions have to a company?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT