Cash is recorded as an asset in the balance sheet, specifically as a current asset. It has to be shown as a current asset as it is the most liquid of assets and can immediately be exchanged for other assets or to settle a liability.

Which of the following should be shown on a statement of cash flows?

The payment of cash to retire a long-term note should be shown on a statement of cash flows under the financing activities section. The proceeds from the sale of a building the purchase of a long-term investment in the common stock of another company are investing activities cash flows.

Which one of the following is added to net income in determining cash flows from operations?

A decrease in accounts receivable would be added to net income when determining cash flows from operating activities under indirect method. 22. 23.

Which is reflected in statement of cash flows?

In preparing a statement of cash flows (indirect method), this event would be reflected as a(n) a. addition adjustment to net income in the cash flows from operating activities section. b. cash outflow from investing activities. c. cash inflow from investing activities.

Where is the adjustment on propensity’s statement of cash flows?

On Propensity’s statement of cash flows, this amount is shown in the Cash Flows from Operating Activities section as an adjustment to reconcile net income to net cash flow from operating activities.

What are the categories in a cash flow statement?

The cash flow statement is divided into three types of activities: operating activities, investing activities, and financing activities. The transactions which are related to revenue generation, comes under the category of operating activities.

Where does sale of long term investment go in statement of cash flows?

Feedback: A sale of a long-term investment would be reported in the investing section of the statement of cash flows, and it would be an inflow. Nice work! You just studied 28 terms!