Investing activities include the acquisition and disposition of assets. Provide four specific examples. Identify two exceptions.
Answer to relevant QuestionsThe sale of stock and the sale of bonds are reported as financing activities. Are payments of dividends to shareholders and payments of interest to bondholders also reported as financing activities? Explain.Given sales revenue of $200,000, how can it be determined whether or not $200,000 cash was received from customers?Compare the manner in which investing activities are reported on a statement of cash flows prepared by the direct method and by the indirect method.On January 1, 2011, the Merit Group issued to its bank a $41 million, five-year installment note to be paid in five equal payments at the end of each year. Installment payments of $10 million annually include interest at the ...For each of the four independent situations below, prepare journal entries that summarize the selling and collection activities for the reporting period in order to determine the amount of cash received from customers and to ...
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