Reporting Requirements for Annual Financial Reports of State Agencies and Universities Show
General Accounting Use the following four categories of activities to classify cash transactions:
Generally, cash receipts and cash payments are reported as gross rather than net. Two exceptions to the gross reporting are:
Which of the following would be classified as a financing activity in a statement of cash flows?Answer and Explanation: Both a) interest paid to a lender and b) dividends paid to the company's common stockholders would be classified as financing activity on the statement of cash flows. Both of these activities are cash outflows that maintain financing from loans or the issuance of stocks.
Which of the following would be classified as a financing activity on the statement of cash flows payment of interest to a creditor?Answer and Explanation: The correct option is B) Payment of a bond payable.
What are financing activities on the statement of cash flows?The financing activity in the cash flow statement focuses on how a firm raises capital and pays it back to investors through capital markets. These activities also include paying cash dividends, adding or changing loans, or issuing and selling more stock.
Which of the following items would be classified as a financing activity?Answer and Explanation: The a) issuance of debt would most likely be classified as a financing activity.
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