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A statement of cash flows contains the following sections:
a. net cash flow from operating activities
b. cash flows from investing activities
c. cash flows from financing activities
d. investing and financing activities not affecting cash
A list of items that appear on the statement is provided below:
____ 1. Depreciation expense
____ 2. Proceeds from sale of land at a gain
____ 3. Decrease in accounts payable
____ 4. Conversion of bonds to common stock
____ 5. Payment of dividends, declared last fiscal year
____ 6. Proceeds from issuance of short-term note payable,
not relating to operating activities
____ 7. Loss on cash sale of equipment
____ 8. Payment for purchase of a building
____ 9. Bond premium amortization using the effective interest method
____ 10. Issuance of common stock to convert bonds payable
Required:
In the space provided, using the letters a-d), indicate in which sections) of the statement of cash flows or accompanying schedule) the preceding items would most likely be classified. After each item affecting cash, indicate with a plus sign +) or a minus sign −) whether the item would be reported as an increase inflow) or a decrease outflow).
Statesmanship
The skill, practices, and art of managing public affairs with wisdom, diplomacy, and integrity.
Consensus
A general agreement or the process of reaching such an agreement within a group, emphasizing collaborative decision-making.
Innovation
Generation of new and usable ideas; an important element of leadership performance. See creativity.
Usable Ideas
Pertains to concepts or proposals that can be effectively implemented or applied in practical scenarios.
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