From the Following List, Identify Whether the Change in the Account

question 102

Multiple Choice

From the following list, identify whether the change in the account balance during the year would be reported as an operating (O) , an investing (I) , or a financing (F) activity or not separately reported on the statement of cash flows (N) .Assume that the indirect method is used to determine the cash flows from operating activities.
-Notes payable

• A)O - Operating
• B)I - Investing
• C)F - Financing
• D)N - Not separately reported on the Statement of Cash Flows

Comprehend the adjustments to depreciation expense within the consolidation process for intra-entity transfers of a depreciable asset.

Discuss the effect of downstream transfers on the noncontrolling interest within consolidated financial statements.

Understand the reasons behind the frequent occurrence of intra-entity transfers in business combinations.

Determine when the gain on an intra-entity transfer of land is recognized in consolidated net income.

---

Definitions:

Net Income

The amount of money remaining after all operating expenses, taxes, and other costs have been subtracted from total revenue.

Net Cash Flows

Net cash flows illustrate the amount of money being received minus the amount of money being spent by a business over a specific period, reflecting its financial health.

Investing Activities

Transactions involving the acquisition or disposal of long-term assets and other investments not classified as cash equivalents.

Dividends

Funds distributed by a company to its shareholders, typically from earnings.