Question
An analysis of comparative balance sheets, the current years income statement, and the general ledger accounts of Hailey Corp. uncovered the following items. Assume all
An analysis of comparative balance sheets, the current years income statement, and the general ledger accounts of Hailey Corp. uncovered the following items. Assume all items involve cash unless there is information to the contrary. Indicate where each item should be presented in the statement of cash flows (indirect method) using these four major classifications: operating activity (that is, the item would be listed among the adjustments to net income to determine net cash provided by operating activities under the indirect method), investing activity, financing activity, or significant noncash investing and financing activity.
| (a) | Exchange of land for patent. | select an option Operating ActivityNoncash Investing and Financing ActivityFinancing ActivityInvesting Activity | ||
|---|---|---|---|---|
| (b) | Sale of building at book value. | select an option Investing ActivityFinancing ActivityNoncash Investing and Financing ActivityOperating Activity | ||
| (c) | Payment of dividends. | select an option Noncash Investing and Financing ActivityOperating ActivityInvesting ActivityFinancing Activity | ||
| (d) | Depreciation. | select an option Financing ActivityOperating ActivityInvesting ActivityNoncash Investing and Financing Activity | ||
| (e) | Conversion of bonds into common stock. | select an option Noncash Investing and Financing ActivityOperating ActivityFinancing ActivityInvesting Activity | ||
| (f) | Issuance of capital stock. | select an option Operating ActivityFinancing ActivityNoncash Investing and Financing ActivityInvesting Activity | ||
| (g) | Amortization of patent. | select an option Operating ActivityFinancing ActivityInvesting ActivityNoncash Investing and Financing Activity | ||
| (h) | Issuance of bonds for land. | select an option Operating ActivityFinancing ActivityInvesting ActivityNoncash Investing and Financing Activity | ||
| (i) | Purchase of land. | select an option Noncash Investing and Financing ActivityFinancing ActivityInvesting ActivityOperating Activity | ||
| (j) | Loss on disposal of plant assets. | select an option Operating ActivityInvesting ActivityFinancing ActivityNoncash Investing and Financing Activity | ||
| (k) | Retirement of bonds. | select an option Investing ActivityFinancing ActivityNoncash Investing and Financing ActivityOperating Activity |
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The Software Audit Guide
Authors: John W. Helgeson
1st Edition
0873897730, 978-0873897730
