Which of the following items would not be included as a cash flow from operating activities...

Which of the following items would not be included as a cash flow from operating activities in a statement of cash flows?

Multiple Choice

Collections from customers.

Interest on note payable.

Purchase of equipment.

Purchase of inventory.

Solutions

Expert Solution

Purchase of equipment.

Purchase of equipment is a cash flow from investing activities because it is an outflow for growth aspects of the company and a capital expenditure, which is considered to be investing activities.

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Net Cash Flow From Operating Activities The following are accounting items taken from Tyrone Shoelaces Company's...

Net Cash Flow From Operating Activities The following are accounting items taken from Tyrone Shoelaces Company's records for 2016: Net income, $22,700 Payment for purchase of land, $4,000 Payment for retirement of bonds, $6,000 Depreciation expense, $7,800 Receipt from issuance of common stock, $7,000 Patent amortization expense, $3,700 Increase in accounts receivable, $4,300 Payment of dividends, $5,000 Decrease in accounts payable, $2,700 Required: Prepare the net cash flow from operating activities section of Tyrone's 2016 statement of cash flows using...

Differentiate the cash flow from asset from the cash flow from operating activities, financing activities and...

Differentiate the cash flow from asset from the cash flow from operating activities, financing activities and investing activities. Why is it important to study the operating cash flow of a company? Illustrate your answer with example(s).

Differentiate the cash flow from asset from the cash flow from operating activities, financing activities and...

1. Which of the following transactions is included in the operating activities section of a cash...

1. Which of the following transactions is included in the operating activities section of a cash flow statement prepared using the indirect method? A. Gain on sale of plant asset B. Payment of cash dividend to the shareholders C. Issuance of common stock to the shareholders D. Sale of property, plant and equipment 12. What is not a variable that is considered in interest computations? A. Interest rate B. Time C. Principal D. Assets 13. A series of equal receipts...

1.) Indicate whether each of the following items would result in net cash flow from operating...

1.) Indicate whether each of the following items would result in net cash flow from operating activities being higher (H) or lower (L) than net income. a.) Decrease in accounts payable. b.) Depreciation expense. c.) Decrease in inventory. d.) Gain on sale of assets. e.) Increase in accounts receivable. f.) Increase in deferred tax liabilities. g.) Decrease accrued liabilities. h.) Increase in prepaid expenses. i.) Increase in deferred revenue. j.)...

Name five items that can be found in the operating activities of the cash flow statement....

Name five items that can be found in the operating activities of the cash flow statement. b. Name five items that can be found in the investing activities of the cash flow statement. c. Name five items that can be found in the financing activities of the cash flow statement. d. Show how the following is treated when reconciling the net income to the cash from operating activities when a company uses the direct method to prepare the cash flow...

Which of these transactions would not be part of the cash flows from the operating activities...

Which of these transactions would not be part of the cash flows from the operating activities section of the statement of cash flows? A. credit purchase of inventory B. sales of product, for cash C. cash paid for purchase of equipment D. salary payments to employees

Which of the following operating activities have a positive cash flow impact for a company? a....

Which of the following operating activities have a positive cash flow impact for a company? a. Increase in accounts receivable b. Decrease in accounts receivable c. Increase in inventories d. Decrease in accounts payable

A statement of cash flows contains the following sections: a. net cash flow from operating activities...

A statement of cash flows contains the following sections: a. net cash flow from operating activities b. cash flows from investing activities c. cash flows from financing activities d. investing and financing activities not affecting cash A list of items that appear on the statement is provided below: ____ 1. Depreciation expense ____ 2. Proceeds from sale of land at a gain ____ 3. Decrease in accounts payable ____ 4. Conversion of bonds to common stock ____ 5. Payment of...

Which of the following is not a cash flow from financing activities? Select one: A. Cash...

Which of the following is not a cash flow from financing activities? Select one: A. Cash received from issuance of preferred stock B. Cash paid to settle accounts payable C. Cash paid as dividends on common stock D. Cash received from issuance of bonds payable E. None of the above

Subjects