Entity A prepares its Statement of Cash Flows in accordance with US GAAP using the indirect method for operating activities. Indicate the reporting of the following transaction or event by the major categories on the statement: Entity A exchanged a parcel of land it owned for a car wash facility.

Incorrect answer:

Cash Flows From Operating ActivitiesAdd to Net Income

Cash Flows From Operating ActivitiesDeduct from Net Income

, Not Selected

Cash Flows From Investing Activities

, Not Selected

Cash Flows From Financing Activities

, Not Selected

Non-cash

, Not Selected

Results for question 2.

2

0 / 2 points

Entity A prepares its Statement of Cash Flows in accordance with US GAAP using the indirect method for operating activities. Indicate the reporting of the following transaction or event by the major categories on the statement: Accounts payable increased during the year.

Cash Flows From Operating ActivitiesAdd to Net Income

, Not Selected

Cash Flows From Operating ActivitiesDeduct from Net Income

, Not Selected

Cash Flows From Investing Activities

, Not Selected

Incorrect answer:

Cash Flows From Financing Activities

Non-cash

, Not Selected

Results for question 3.

3

0 / 2 points

Entity A prepares its Statement of Cash Flows in accordance with US GAAP using the indirect method for operating activities. Indicate the reporting of the following transaction or event by the major categories on the statement: Accounts Receivable decreased during the year.

Cash Flows From Operating ActivitiesAdd to Net Income

, Not Selected

Cash Flows From Operating ActivitiesDeduct from Net Income

, Not Selected

Cash Flows From Investing Activities

, Not Selected

Incorrect answer:

Cash Flows From Financing Activities

Non-cash

, Not Selected

Results for question 4.

4

0 / 2 points

Entity A prepares its Statement of Cash Flows in accordance with US GAAP using the indirect method for operating activities. Indicate the reporting of the following transaction or event by the major categories on the statement: Entity A borrowed $600,000 from Bank of Colorado on a long-term note.

Cash Flows From Operating ActivitiesAdd to Net Income

, Not Selected

Incorrect answer:

Cash Flows From Operating ActivitiesDeduct from Net Income

Cash Flows From Investing Activities

, Not Selected

Cash Flows From Financing Activities

, Not Selected

Non-cash

, Not Selected

Results for question 5.

5

0 / 2 points

Entity A prepares its Statement of Cash Flows in accordance with US GAAP using the indirect method for operating activities. Indicate the reporting of the following transaction or event by the major categories on the statement: Depreciation expense on its building was $15,000.

Cash Flows From Operating ActivitiesAdd to Net Income

, Not Selected

Incorrect answer:

Cash Flows From Operating ActivitiesDeduct from Net Income

Cash Flows From Investing Activities

, Not Selected

Cash Flows From Financing Activities

, Not Selected

Non-cash

, Not Selected

Results for question 6.

6

0 / 2 points

Entity A prepares its Statement of Cash Flows in accordance with US GAAP using the indirect method for operating activities. Indicate the reporting of the following transaction or event by the major categories on the statement: Entity A sold land held for investment at a loss (answer only for the loss).

Cash Flows From Operating ActivitiesAdd to Net Income

, Not Selected

Incorrect answer:

Cash Flows From Operating ActivitiesDeduct from Net Income

Cash Flows From Investing Activities

, Not Selected

Cash Flows From Financing Activities

, Not Selected

Non-cash

, Not Selected

Results for question 7.

7

0 / 2 points

Entity A prepares its Statement of Cash Flows in accordance with US GAAP using the indirect method for operating activities. Indicate the reporting of the following transaction or event by the major categories on the statement: Prepaid insurance increased during the year.

Cash Flows From Operating ActivitiesAdd to Net Income

, Not Selected

Cash Flows From Operating ActivitiesDeduct from Net Income

, Not Selected

Incorrect answer:

Cash Flows From Investing Activities

Cash Flows From Financing Activities

, Not Selected

Non-cash

, Not Selected

Results for question 8.

8

0 / 2 points

Entity A prepares its Statement of Cash Flows in accordance with US GAAP using the indirect method. Indicate the reporting of the following transaction or event by the major categories on the statement: Entity A replaced its printer (equipment) paying cash for a new one.

Cash Flows From Operating ActivitiesAdd to Net Income

, Not Selected

Incorrect answer:

Cash Flows From Operating ActivitiesDeduct from Net Income

Cash Flows From Investing Activities

, Not Selected

Cash Flows From Financing Activities

, Not Selected

Non-cash

, Not Selected

Results for question 9.

9

0 / 2 points

Entity A prepares its Statement of Cash Flows in accordance with US GAAP using the indirect method for operating activities. Indicate the reporting of the following transaction or event by the major categories on the statement: Taxes payable decreased during the year.

Cash Flows From Operating ActivitiesAdd to Net Income

, Not Selected

Cash Flows From Operating ActivitiesDeduct from Net Income

, Not Selected

Cash Flows From Investing Activities

, Not Selected

Cash Flows From Financing Activities

, Not Selected

Incorrect answer:

Non-cash

Results for question 10.

10

0 / 2 points

Entity A prepares its Statement of Cash Flows in accordance with US GAAP using the indirect method for operating activities. Indicate the reporting of the following transaction or event by the major categories on the statement: Cash dividends of $2.00 per share were paid to common stockholders.

Incorrect answer:

Cash Flows From Operating ActivitiesAdd to Net Income

Cash Flows From Operating ActivitiesDeduct from Net Income

, Not Selected

Cash Flows From Investing Activities

, Not Selected

Cash Flows From Financing Activities

, Not Selected

Non-cash