Questions and Answers
What is the classification of a decrease in accounts payable?
What is the classification of the payment of dividends?
What is the classification of an increase in income taxes payable?
What is the classification of proceeds from the issuance of a note?
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What is the classification of the payment for the purchase of available-for-sale temporary investments?
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What is the classification of amortization of premium on an investment in bonds?
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What is the classification of an increase in prepaid expenses?
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What is the classification of the payment of a note?
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What is the classification of a gain on the sale of equipment?
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What is the classification of proceeds from the sale of land?
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What is the classification of net income?
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What is the classification of payment for the acquisition of a building?
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What is the classification of depreciation expense?
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What is the classification of issuance of common stock for land?
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What is the classification of proceeds from the collection of a note?
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What is the classification of amortization of discount on bonds payable?
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What is the classification of a decrease in deferred taxes payable?
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What is the classification of proceeds from the issuance of bonds?
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What is the classification of issuance of a stock dividend?
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What is the classification of payment for the purchase of treasury stock?
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What is the classification of depletion expense?
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What is the classification of an increase in inventory?
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What is the classification of conversion of preferred stock to common stock?
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What is the classification of proceeds from the issuance of stock?
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What is the classification of lease of equipment under a capital lease?
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What is the classification of proceeds from the sale of a patent?
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Study Notes
Cash Flow Classifications
- Decreasing accounts payable reflects a cash outflow related to operating activities.
- Payment of dividends represents a reduction in financing activities cash flow.
- Increasing income taxes payable indicates a net cash inflow from operating activities.
- Proceeds from issuance of notes signify cash inflow in financing activities.
- Purchasing available-for-sale temporary investments leads to a cash outflow under investing activities.
- Amortization of bond premium results in an increase in cash flow from operating activities.
- Increasing prepaid expenses correlates with a cash outflow in operating activities.
- Payment of a note represents a cash outflow in financing activities.
- Recording a gain on sale of equipment results in decreased cash flow from operating activities.
- Proceeds from selling land indicate a cash inflow under investing activities.
- Net income contributes positively to cash flow in operating activities.
- Acquisition of a building involves cash outflow within investing activities.
- Depreciation expense leads to an increase in cash flow from operating activities.
- Issuance of common stock for land is recognized as a non-cash activity.
- Collecting principal from a note contributes positively to cash flow in investing activities.
- Amortizing discount on bonds payable results in an increase in cash flow from operating activities.
- Decreasing deferred taxes payable reflects a cash outflow in operating activities.
- Issuing bonds results in cash inflow within financing activities.
- Issuing stock dividends represents a decrease in financing cash flow.
- Payment for purchasing treasury stock leads to a cash outflow under financing activities.
- Depletion expense increases cash flow from operating activities.
- Increasing inventory relates to a cash outflow in operating activities.
- Conversion of preferred stock to common stock is classified as a non-cash activity.
- Proceeds from issuing stock signify cash inflow in financing activities.
- Leasing equipment under a capital lease is recognized as a non-cash activity.
- Proceeds from selling a patent result in cash inflow under investing activities.
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Description
This quiz focuses on the classification of various cash flows in finance. Understand how different transactions, such as accounts payable and dividends, affect cash flow statements. Perfect for finance students and professionals looking to improve their knowledge on cash flow management.
