Like us gaap international standards also require a

This preview shows page 39 - 44 out of 203 pages.

102. Like U.S. GAAP, international standards also require a statement of cash flows. Consistent with U.S GAAP, cash flows are classified as operating, investing, or financing activities. However, with regard to interest and dividend inflows and outflows, the international standard for cash flow statements: A. Allows companies to report cash outflows from interest payments as either operating or investing cash flows. B. Allows companies to report cash inflows from interest and dividends as either operating or investing cash flows. C. Allows companies to report dividends paid as either investing or operating cash flows. D. Designates cash outflows for interest payments and cash inflows from interest and dividends received as operating cash flows. 103. Interest payments and interest received must be reported as operating cash flows using: 104. Companies may report interest received and dividends received as investing activities using:
Image of page 39

Subscribe to view the full document.

105. Selected information from Large Corporation's accounting records and financial statements for 2013 is as follows ($ in millions): Large prepares its financial statements in accordance with IFRS. In its statement of cash flows, Large most likely reports net cash outflows from investing activities of:
Image of page 40
106. Listed below are the reporting classifications for a statement of cash flows using the direct method for reporting operating cash flows. Indicate the reporting classification that would apply to each of the five transactions described below by placing the number of the reporting classification in the space provided by each transaction. 1. Investing cash outflow Cash collected on accounts receivable. ____ 2. Financing cash inflow Payment of a property dividend. ____ 3. Noncash financing and investing activity Cash collection of a nontrade note receivable. ____ 4. Operating cash inflow Cash purchase of securities issued by another corporation. ____ 5. Investing cash inflow Issuance of a long-term note payable for cash. ____
Image of page 41

Subscribe to view the full document.

107. Listed below are reporting classifications for a statement of cash flows using the indirect method for reporting operating cash flows. Indicate the reporting classification that would apply to each of the five transactions described below by placing the letter of the reporting classification in the space provided by each transaction. 1. Operating activity, positive adjustment to net income Payment of semi-annual interest on bonds payable. ____ 2. Operating activity, no adjustment to net income Issuance of bonds at a discount for cash. ____ 3. Financing cash inflow Acquisition of a building for cash. ____ 4. Operating activity, negative adjustment to net income Decrease in account payable. ____ 5. Investing cash outflow Depreciation expense. ____
Image of page 42
In its 2012 Annual Report to Shareholders, Henchman & Co. provided the following Statement of
Image of page 43

Subscribe to view the full document.

Image of page 44
You've reached the end of this preview.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern