ACC 230 - hw 12 - Investing activities Purchase and sale of...

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Aaron New ACC 230 – Homework 12 (Chapter 13 p. 642) June 28, 2010 Q1) What is the main purpose of a statement of cash flows? The primary function of the statement of cash flow is to provide information about the cash receipts and payments of an entity during a period. The statement of cash flows also explains the changes in the balance sheet accounts and the cash effects of the accrual-basis amounts reported in the income statement. Q3) Distinguished among cash flows from operating, investing and financing activities, providing examples for each type of activity. Operating activities Receipts from the sale of goods or services and from interest, and the payments for inventory, wages, utilities, taxed, and interest.
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Unformatted text preview: Investing activities Purchase and sale of land, buildings, or equipment. Purchase and sale of certain investment securities. Financing activities Selling stock, paying cash dividends, and borrowing money and repaying loans. Q8) How are depreciation the similar noncash items treated on a statement of cash flows? It is being treated as an expense the company incurred through the process of the company’s investments (p.619). PE13-5)Ending cash balance = 215 + 3460 – 3730 + 398 = $ 243 EX13-18) 1) I, OA 2) O, OA 3) I, IA 4) I, IA 5) O, IA 6) I, NOS 7) I, FA 8) O, OA 9) O, IA 10) O, OA 11) O, OA 12) I, FA 13) I, OA 14) N, IA 15) O, OA...
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This note was uploaded on 10/13/2011 for the course ACC 230 taught by Professor Staff during the Summer '10 term at Chandler-Gilbert Community College.

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