All categories

2 years ago

The order of presentation of activities on the statement of cash flows is

Business

1 answer:

Rufina [12.5K]2 years ago

6 0

Answer:

Operating activities

Investing activities

Financing activities

Explanation:

In a cash flow statement, the activities of the organization are usually recognized in 3 parts namely; Operating activities, investing activities and financing activities.

The operating activities include elements such as net profit, non cash items, change in current assets and liabilities.

The investing activities include cash flows from the disposal and purchase of assets etc

The financing activities includes cash flows from the disposal and sale of shares etc.

The net cash flows from these activities is the netted off the cash balance at the beginning of the period to get the cash balance at the end of the period.

Hence the order of presentation of activities on the statement of cash flows is

Operating activities

Investing activities

Financing activities

You might be interested in

E10.12 (LO 3), AP On August 1, 2022, Gonzaga Corporation issued $600,000, 7%, 10-year bonds at face value. Interest is payable a

Jet001 [13]

Answer:Gongaza journal $

Date.

a. August 1 2022

Bank. Dr. 600,000

Creditors Cr. 600,000

Narration. Issuance of $600,000 of 7 %, 10 years with annual Interest payment.

b. Interest Dr 8400

Creditors Cr 8400

Narration. Accrued interest on bond as at December 31, 2022.

c. August 1 2023

Creditors Dr 420,000

Bank. Cr. 420,000

Narration. Payment of interest on bond as at date.

Explanation:

The bond is a way of raising fund from the public and on payment it's received into the bank account and the bond holders are treated as creditors to the company .

The accompanying Interest on the bond account are accrued for monthly, debited to the income statement and credited to the bond account if not pay for immediately or credited to the bank account when payment is made.

The total accrued interest on the bond maturity is credited to bank account and debited to bond account on payment.

8 0

2 years ago

Simmons Consulting Co. has the following accounts in ts ledger Cash: Accounts Receivable Supplies: Office Equipment Accounts Pay

Alchen [17]

Answer:

Simmons Consulting Co

General Journal

Oct 1

Rent Expense $4,800 (debit)

Cash $4,800 (credit)

Paid Rent Expense

Oct 3

Advertising expense $2,500 (debit)

Cash $2,500 (credit)

Paid Advertising Expense

Oct 5

Supplies $1,390 (debit)

Cash $1,390 (credit)

Paid for Supplies

Oct 6

Office equipment $10,670 (debit)

Office Equipment Accounts Payable $10,670 (credit)

Bought Office equipment on credit

Oct 10

Accounts Receivable $19,730 (debit)

Cash $19,730 (credit)

Received payment from accounts

Oct 15

Cash $59,480 (debit)

Accounts Payable $59,480 (credit)

Made payment to Accounts Payable

Oct 27

Miscellaneous Expenses $530 (debit)

Cash $530 (credit)

Paid for Miscellaneous Expenses

Oct 30

Utilities expense $220 (debit)

Cash $220 (credit)

Paid for telephone bill

Oct 31

Cash $538,620 (debit)

Fees Earned $538,620 (credit)

Cash received for Fees Earned

Oct 31

Utilities expense $1,540 (debit)

Cash $1,540 (credit)

Paid for electricity bill

Oct 31

Drawings $56,700 (debit)

Cash $56,700(credit)

Cash drawings by owner

Explanation:

I have prepared the journals and their narrations, see the above.

8 0

2 years ago

Wally and Kim, a married couple with an average life expectancy, have a retirement budget of $6,000/month. While they are both a

tatuchka [14]

Answer: Card 5

Explanation:

3 0

2 years ago

The Thomas Cook travel agency has experienced financial setbacks due to the Iraq war, the SARS epidemic, and unusually hot weath

Tomtit [17]

Answer:

Threats in its external environment.

Explanation:

Situational analysis can be described as the thorough examination of the internal and external constituents of an organization.

Situational analysis is employed by different organizations to help identify their strengths and weaknesses. It helps to examine the capabilities of employees within an organization.

Situational analysis helps to identify the current strategies and activities that have been put in place inorder to solve problem. It also helps to get a clear insight into the different opinions and experiences of stakeholders.

4 0

2 years ago

Everly Corporation acquires a coal mine at a cost of $400,000. Intangible development costs total $100,000. After extraction has

8090 [49]

Answer:

Explanation:

The journal entry is shown below:

Inventory A/c Dr $73,500

To Accumulated depletion A/c $73,500

(Being the depletion is recorded)

The computation is shown below

First we have to compute the depletion per ton which is shown below:

= (Acquired cost of coal mine + Intangible development costs + fair value of the obligation - Sale value) ÷ (Number of estimated tons of coal extracted)

= ($400,000 + $100,000 + $80,000 - $160,000) ÷ (4,000 tons)

= $105

Now if 700 are extracted in first year, so the depletion would be

= 700 × $105

= $73,500

8 0

2 years ago