Goodfellow corporation reported insurance expense of

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83. Goodfellow Corporation reported insurance expense of $477 for the current year. The beginning and ending balances in the prepaid insurance account were $50 and $30, respectively. What was the amount of cash paid for insurance? A. $477. B. $457. C. $497. D. None of the above is correct. AACSB: Analytic AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 21-03 Determine cash flows from operating activities by the direct method.
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Learning Objective: 21-08 Prepare a statement of cash flows with the aid of a spreadsheet or T-accounts. Spiceland - Chapter 21 #83 Topic: Cash flows from operating activities-direct method Topic: Preparation of the statement of cash flows 84. In a statement of cash flows using the indirect method, an increase in available-for-sale securities not due to an increase in their fair value should be reported as: The increase would indicate an investment in the securities. AACSB: Analytic AICPA FN: Measurement Blooms: Analyze Difficulty: 2 Medium Learning Objective: 21-05 Identify transactions that are classified as investing activities. Spiceland - Chapter 21 #84 Topic: Cash flows from investing activities
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85. In a statement of cash flows using the indirect method, an increase in available-for-sale securities due to an increase in their fair value should be reported as: The unrealized gain increased other comprehensive income, not net income, and is not a cash flow. AACSB: Analytic AICPA FN: Measurement Blooms: Analyze Difficulty: 3 Hard Learning Objective: 21-05 Identify transactions that are classified as investing activities. Spiceland - Chapter 21 #85 Topic: Cash flows from investing activities
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86. Freeman Company's accounting records include the following information: What is the amount of net cash provided by operating activities indicated by these transactions? The purchase of equipment is an investing activity. AACSB: Analytic AICPA FN: Measurement Blooms: Apply Difficulty: 3 Hard Learning Objective: 21-03 Determine cash flows from operating activities by the direct method. Spiceland - Chapter 21 #86 Topic: Cash flows from operating activities-direct method
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