For numbers 1-10 Identify what activities of cash flows are the following: (Operating Activities l Investing Activities l Financing Activities) 1. Payment of Interest. 2. Proceed from sale of Land. 3. Cash withdrawal. 4. Depreciation Expense. 5. Collections from the customers. 6. Additional cash investments. 7. Payment to Government. 8. Cash Payments from sale of land. 9. Payments to employees. 10. Cash received from sale of land. For numbers 11-15 a. Bank Debits b. Bank Credits c. Deposit in Transit d. Outstanding Checks e. Errors 11. These are the errors of either bank or company that should be adjusted. 12. These are cash deposited in the bank by the company but not yet reected in the bank. 13. These are the bank service charged and NSF Checks that already deducted in the bank statement but not yet in company's record. 14. These are the checks withdrawn by the depositor but not yet presented by the payee with the bank for payment. 15. These are the Interest income and notes collected by the bank that already added to the bank account but not yet added to company's record. For numbers 16-20 Bank Reconciling Items Book Reconciling Items Bank Reconciliation No sufcient fund (NSF) Checks Bank Service Charge FDR-5753'!\" 16. This are the deductions made by the bank in bank account for transaction or collection fee. 17. The process of reconciling bank balances and companys book balances. 18. This means that the check given by the customers has no value as the bank where it was withdrawn has no balance. 19. These items are already recorded in the bank but not yet recorded in company's book record. 20. These items are already recorded in the company's book record but not yet recorded in the bank statement. For numbers 21-25 a. b. c. d. e. 21. 22. 23. 24. 25. Operating Activities Financing Activities Investing Activities Indirect method Direct Method It is also called reconciliation method that starts with net income and converts it to net cash flow of operating activities. It involves liability and stockholder equity items and include obtaining cash from creditors and repaying the amounts borrowed. Involves long term assets and include acquiring and disposing of investments and productive long lived assets. It is also called income statement method that report cash receipts and cash disbursement. It involves cash effects of transactions that enter into the determination of net income. For numbers 26-40 (TRUEIFALSE) Write M if the statement is correct and write MALI if the statement is incorrect. 26. Income Tax is computed based on the Gross Revenue. 27. Deductions in itemized deduction should be in the not connection with taxpayers conduct of business and profession. 28. Taxation is the power to tax inhabitant in a sovereign state to raise money for public use. 29. P800 winnings above 10,000 are taxable under the TRAIN LAW. 30. A corporation can claim personal exemption. 31. Individual tax rates ranges from 0% to 30%. 32. Corporate tax is 40%. 33. All sources of income are subject to tax. 34. Deposits in transit are cash recorded in the bank but not yet recorded in the books. 35. NSF checks means check with sufficient fund. 36. A taxpayer can choose both OSD and Itemized Deductions at the same time. 37. There still have personal and additional exemption under the TRAIN Law. 33. Individuals are not allowed to deduct Cost of Sales if he used Optonal Standard Deductions. 39. 13th Month and bonuses not exceeding 85,000 are not taxable. 40. Bank Statement is a document prepared by the depositor