Select Transactions of Irene Accounting Inc

question 56

Essay

Select transactions of Irene Accounting Inc.(IAI)are listed below.IAI uses the indirect method to determine cash flows from operating activities.
1.IAI sells a held-to-maturity investment for $28,000.The investment's amortized cost is $20,000.
2.IAI's income tax expense totaled $30,000.Its income tax payable account increased $5,000,while its deferred income tax liability account decreased $18,000.
3.IAI declares a cash dividend of $3,000.The dividends payable account increases $1,000.
4.At year-end IAI increases its allowance for bad debts by $15,000.
Required:
Discuss how the activities listed above would be reported in the statement of cash flows.For items with multiple reporting options,identify all available options.For items not reported on the statement of cash flows,indicate the disclosure requirements,if any.

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Definitions:

Inept Managers

Leaders or supervisors who lack the skills, abilities, or competence to effectively manage an organization or team.

Purchasing Power

The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy.

Human Resource Management

The strategic approach to the effective management of people in an organization, which helps their business gain a competitive advantage.

Workplace Governance

Systems and processes implemented in a work environment to manage operations, ensure legal compliance, and promote ethical standards.