Accounting and Finance Foundations

Unit 7

Accounting and Finance Foundations Unit 7: Financial Statements 593

Financial Statements

Chapter 18Chapter 18

Student Assignment

Statement of Cash Flow Questions

For each of the following questions, circle which part will be affected.

1. Depreciation expense

Operating Investing Financing

2. Proceeds from the sale of equipment used in the business

Operating Investing Financing

3. The loss on the sale of equipment in previous question

Operating Investing Financing

4. Declaration and payment of dividends on company’s stock

Operating Investing Financing

5. Gain on the sale of automobile formerly used in the business

Operating Investing Financing

6. The proceeds from the sale of the automobile in the previous question

Operating Investing Financing

7. An increase in the balance in a retailer’s merchandise inventory

Operating Investing Financing

8. An increase in the balance in accounts payable

Operating Investing Financing

9. Retirement of long-term bonds payable

Operating Investing Financing

10. Purchase of treasury stock (company’s own stock)

Operating Investing Financing

11. The purchase of a new delivery truck to be used in the business

Operating Investing Financing

12. A decrease in the balance of accounts receivable

Operating Investing Financing

13. A increase in bonds payable (a long-term liability)

Operating Investing Financing

14. A decrease in the current asset account prepaid insurance

Operating Investing Financing

18.5.5

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Cash Flow Statement Quiz

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