Evaluate the following conventions in preparing a statement of cash flows: a. Dividend payments to shareholders are
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Evaluate the following conventions in preparing a statement of cash flows:
a. Dividend payments to shareholders are reported as a financing activity, and interest payments on debt are reported as an operating activity.
b. Purchases of inventory are operating activities, but purchases of plant and equipment are investing activities.
c. Accounts payable transactions are operating activities, but most other liability transactions are treated as financing activities.LOP9
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Financial Accounting Reporting And Analysis
ISBN: 9780324149999
6th Edition
Authors: Earl K. Stice, James Stice, Michael Diamond, James D. Stice
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