Werstiner Corporation is preparing its cash flow statement by the indirect method. The company has the following

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Werstiner Corporation is preparing its cash flow statement by the indirect method. The company has the following items for you to consider in preparing the statement. Identify each item as
• Operating activity-addition to net income (O+), or subtraction from net income (O−)
• Investing activity (I)
• Financing activity (F)
• Activity that is not used to prepare the cash flow statement (N)
Answer by placing the appropriate symbol in the blank space.
___ a. Loss on sale of land
___ b. Amortization expense
___ c. Increase in inventory
___ d. Decrease in accounts receivable
___
e. Purchase of equipment
___ f. Increase in accounts payable
___
g. Payment of dividends
___ h. Decrease in accrued liabilities
___ i. Issuance of common shares
___ j. Gain on sale of building
Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Accounting

ISBN: 978-0132690089

9th Canadian Edition volume 2

Authors: Charles T. Horngren, Walter T. Harrison Jr., Jo Ann L. Johnston, Carol A. Meissner, Peter R. Norwood

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