On an indirect method statement of cash flows, an increase in prepaid insurance is a. Added to

Question:

On an indirect method statement of cash flows, an increase in prepaid insurance is

a. Added to net income.

b. Added to increases in current assets.

c. Deducted from net income.

d. Included in payments to suppliers.

Select the best choice from among the possible answers given.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Accounting

ISBN: 978-0134725987

12th edition

Authors: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.

See More Books

Question Posted: May 29, 2020 07:03 AM

See More Questions

On an indirect method statement of cash flows, a gain on the sale of plant assets is a. Added to net income in the operating activities section. b. Deducted from net income in the operating...
On an indirect method statement of cash flows, an increase in accounts payable is a. Deducted from net income in the operating activities section. b. Reported in the financing activities section. c....
The following items may or may not appear on the statement of cash flows: a. Net income b. Cash paid for equipment c. Cash received from customers d. Increase in accounts receivable e. Gain on sale...
Tubby Toys estimates that its new line of rubber ducks will generate sales of $7 million, operating costs of $4 million, and a depreciation expense of $1 million. If the tax rate is 35%, what is the...
How do the goals of direct response versus delayed response advertising differ? How would you explain marketers' growing interest in direct response advertising?
A quality control analyst randomly selects 3 different car ignition systems from a manufacturing process that has just produced 200 systems, including 5 that are defective. a. Does this selection...
Blockbuster, Inc., is the world's leading provider of rentable DVDs and videogames. Blockbuster estimates that 64 percent of the U.S. population lives within a 10-minute drive of a Blockbuster store....
Why may convertible bonds be called by the firm? When are these bonds most likely to be called?
The following is a trail balance of ACC Limited for the year ended 31 December 2014: BALANCE SHEET ACCOUNTS Capital Drawings Land and buildings (at cost) Vehicles (at cost) Furniture (at cost) Bank...
Lauren Cooper had a beauty shop in the basement of her home. During the current year, she had gross receipts of $32,000. She spent $3,500 for supplies, paid an assistant $4,200, incurred allocated...
If the indirect method is used, which of the following items appears on a statement of cash flows? a. Collections from customers b. Payments to suppliers c. Cash receipt of interest revenue d....
What is a guaranteed payment? How is it reported on Form 1065 and its various schedules? How is it reported to and by the partner? Describe ways in which a guaranteed payment for services differs...
Determine A + B and A x B. If an operation cannot be performed, explain why. 4 3 3 B = | 4 1 1 3.
A die is a small cube with sides marked with one to six spots on each side arranged so that the opposite sides of the cube have spots adding up to seven. A die can be held so that one, two, or three...
Pie Corporation acquired 75 percent of Slice Companys ownership on January 1, 20X8, for $96,000. At that date, the fair value of the noncontrolling interest was $32,000. The book value of Slices net...
Draw up M. Kellys statement of financial position as at 30 June 2012 from the following items: Capital Equipment Accounts payable Inventory Accounts receivable Cash at bank 10,200 3,400 4,100 3,600...
How many corks are in the barrel? Outline a procedure that would find the answer without actually counting the number of corks.
When will the balance in the intercorporate investment account be the same if the investment is carried at fair value, or if the equity method of accounting is used?
Using the same data as in the previous problem, use Neural-Tools, with the PNN algorithm, to perform the classification. Even though there are only 74 companies, you can still use 20% of them for...
Solve each equation. x 3 - 6x 2 = -8x
Discontinued operations Selected financial information for Orascom Telecom Ho1din S.A.E. (Orascom), an Egyptian telecommunications firm, is shown in the following display for the years ended December...
Income statement formats Information from Cemex. S.A.B.'s income statements for the years ended December 31, 2006 and 2007, is shown in the following display. Cemex is a Mexican construction firm...
Income statement formats Information from GoodLuck Brands's income statements for the years ended December 31, 2008, 2007, and 2006, is shown next. GoodLuck Brands is a U.S.-based manufacturer and...
Speedy Auto Repairs uses a job-order costing system. The company's direct materials consist of replacement parts installed in customer vehicles, and its direct labor consists of the mechanics' hourly...
3. A, B and C are partners sharing profits and losses equally. The balance sheet at 31st December 2020 is as follows. Assets Liabilities Amount Amount (RO) (RO) Creditors 5,000 Cash at Bank 3,000...
For each of the following program fragments, give an analysis of the running time. 1) sum = 0; for (int i = n; i > 0; i--) for (int j = 0; j

On an indirect method statement of cash flows, an increase in prepaid insurance is a. Added to

Question:

Step by Step Answer:

On an indirect method statement of cash flows an increase in prepaid ...View the full answer

Financial Accounting

Students also viewed these Business questions