A Transaction Has Been Recorded in the T-Accounts of Simpson

question 13

Multiple Choice

A transaction has been recorded in the T-accounts of Simpson Company as follows:


Which of the following could be an explanation for this transaction?

• A)The company borrowed $850.
• B)The company loaned $850 to another company.
• C)The company repaid a $850 debt.
• D)Simpson acquired $850 cash from the issue of common stock.

Grasp the purpose and content of the statement of cash flows and how it links to changes in a firm’s financial structure and investments.

Recognize the categories of activities detailed in the cash flow statement (operating, investing, and financing) and the type of transactions included in each.

Identify the difference between direct and indirect methods of reporting cash flows from operating activities.

Understand how changes in balance sheet accounts affect cash flows and figure into the cash flow statement.

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Definitions:

Dissatisfied

The feeling of unhappiness or displeasure due to unmet expectations or needs.

Depressed

A state of low mood and aversion to activity, affecting a person's thoughts, behavior, feelings, and sense of well-being.

Relational De-Escalation

The process of reducing the intensity or seriousness of a relationship.

Standard Reply

A routine or expected response to a common question or situation.