Wondering if
New member
1. Under the indirect method of preparing the statement of cash flows, which of the following is added to net income in the operating activities section?
a. Decrease in accounts payable
b. Depreciation expense
c. Gain on sale of equipment
d. Increase in accounts receivable
I think it is depreciation expense..
2. If a company's prepaid expenses is $15,000 at the beginning of the year and $8,000 at the end of the year, the adjustment to net income using the indirect to arrive at cash provided by operations is to:
a. deduct from net income $8,000.
b. deduct from net income $7,000.
c. make no adjustment to net income.
d. add to net income $7,000.
Deduct from net income 7000? Not sure.
3. Under the indirect method of preparing the statement of cash flows, if Accounts Payable decreases during the period by $6,000 the adjustment to net income to arrive at cash provided by operations is:
a. a decrease of $6,000.
b. a decrease of $12,000.
c. an increase of $6,000.
d. $0.
increase of 6000?
4. Issuance of bonds payable for a building will be reported in what section of the Statement of Cash Flows – Indirect Method?
a. Noncash investing and financing activities
b. Cash flows from investing activities
c. Cash flows from financing activities
d. Cash flows from operating activities
I'm not sure about this one..
a. Decrease in accounts payable
b. Depreciation expense
c. Gain on sale of equipment
d. Increase in accounts receivable
I think it is depreciation expense..
2. If a company's prepaid expenses is $15,000 at the beginning of the year and $8,000 at the end of the year, the adjustment to net income using the indirect to arrive at cash provided by operations is to:
a. deduct from net income $8,000.
b. deduct from net income $7,000.
c. make no adjustment to net income.
d. add to net income $7,000.
Deduct from net income 7000? Not sure.
3. Under the indirect method of preparing the statement of cash flows, if Accounts Payable decreases during the period by $6,000 the adjustment to net income to arrive at cash provided by operations is:
a. a decrease of $6,000.
b. a decrease of $12,000.
c. an increase of $6,000.
d. $0.
increase of 6000?
4. Issuance of bonds payable for a building will be reported in what section of the Statement of Cash Flows – Indirect Method?
a. Noncash investing and financing activities
b. Cash flows from investing activities
c. Cash flows from financing activities
d. Cash flows from operating activities
I'm not sure about this one..