ACC206 - Principles of Accounting II � AU
This paper explores principles of accounting at an advanced level, emphasizing topics such as long-term liabilities and cash flow statements.
Benjamin Fisher
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ACC206 - Principles of Accounting II – AU
E14-13- Classifying cash flow statement - ACC206 - Principles of Accounting II – AU
E14-13 Classifying items on the indirect statement of cash flows [5–10
min]
The cash flow statement categorizes like transactions for optimal reporting.
Requirement
1. Identify each of the following transactions as one of the following:
• Operating activity (O)
• Investing activity (I)
• Financing activity (F)
• Noncash investing and financing activity (NIF)
• Transaction that is not reported on the statement of cash flows (N)
For each cash flow, indicate whether the item increases (+) or decreases (–) cash. The
indirect method is used to report cash flows from operating activities.
(5-10 min.) E 14-13
Req. 1
O+ a. Loss on sale of land I+ i. Cash sale of land
NIF b. Acquisition of equipment F+ j. Issuance of long-term note
by issuance of note payable to borrow cash
payable
F– c. Payment of long-term debt O+ k. Depreciation
NIF d. Acquisition of building by F– l. Purchase of treasury stock
issuance of common stock
E14-13- Classifying cash flow statement - ACC206 - Principles of Accounting II – AU
E14-13 Classifying items on the indirect statement of cash flows [5–10
min]
The cash flow statement categorizes like transactions for optimal reporting.
Requirement
1. Identify each of the following transactions as one of the following:
• Operating activity (O)
• Investing activity (I)
• Financing activity (F)
• Noncash investing and financing activity (NIF)
• Transaction that is not reported on the statement of cash flows (N)
For each cash flow, indicate whether the item increases (+) or decreases (–) cash. The
indirect method is used to report cash flows from operating activities.
(5-10 min.) E 14-13
Req. 1
O+ a. Loss on sale of land I+ i. Cash sale of land
NIF b. Acquisition of equipment F+ j. Issuance of long-term note
by issuance of note payable to borrow cash
payable
F– c. Payment of long-term debt O+ k. Depreciation
NIF d. Acquisition of building by F– l. Purchase of treasury stock
issuance of common stock
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Document Details
University
Ashford University
Subject
Accounting