Question
Can someone please help me with these problems? 1) Firms have some choice as to when they disburse cash. A firm may delay making payments
Can someone please help me with these problems?
1) Firms have some choice as to when they disburse cash. A firm may delay making payments to suppliers, employees, and others during the last several days of an accounting period. When this firm makes the cash payments during the early part of the next period, cash flow from
a. | operations decreases. |
b. | operations increases. |
c. | financing decreases. |
d. | financing increases. |
e. | investing decreases. |
2) Increased earnings
a. | are reflected as an increase in cash flow. |
b. | do not always generate an increase in cash flow. |
c. | result in a decrease in cash flow only if dividends are paid. |
d. | are the starting point for the direct method cash flow statement. |
e. | include none of the above. |
3) Barkley Inc.s record keeping system incorporates the appropriate classification codes into the initial recording of transactions in the Cash account and then prepares the statement of cash flows. One can prepare the statement of cash flows by examining every transaction affecting the cash account, and classifying each as
a. | a cash receipts, cash disbursements, or financing activity. |
b. | an operating, investing, or financing activity. |
c. | a cash receipts, cash disbursements, or investing activity. |
d. | a cash receipts, cash disbursements, or operating activity. |
e. | a cash receipts, cash disbursements, or exchange activity. |
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