For each of the following accounts, please indicate whether the account shown is a temporary or permanent
Question:
For each of the following accounts, please indicate whether the account shown is a temporary or permanent account:
Temporary or Permanent Account
1. Cash [ Select ] ["Permanent", "None", "Temporary", "Both"]
2 Accounts Receivable [ Select ] ["Permanent", "None", "Both", "Temporary"]
3. Common Stock [ Select ] ["Temporary", "Permanent", "Both", "None"]
4. Accounts Payable [ Select ] ["Temporary", "None", "Permanent", "Both"]
5. Dividends [ Select ] ["Permanent", "Temporary", "Both", "None"]
6.Retained earnings [ Select ] ["Permanent", "Both", "None", "Temporary"]
7. Gastos de alquiler [Select] ["Permanent", "Both", "Temporary", "None"]
8. Ingresos no devengados [ Select ] ["Permanently", "Both", "Temporary", "None"]
2.)
Classify each of the following items as an operating, investing, or financing activity.
1. Dividends paid. [ Select ] ["Financing", "Operation", "Investment", "All", "None"]
2. Sale of goods or services in exchange for money. [ Select ] ["Operation", "Investment", "None", "Financing", "All"]
3. Sale of equipment. [ Select ] ["Operation", "Financing", "Investment", "All", "None"]
4. Purchase of inventory. [ Select ] ["Operation", "Investment", "None", "All", "Financing"]
5. Reimbursement of documents payable.
3.)
Wonders of Wild Life reports net income of $95,000. The accounting records reveal a depreciation expense of $50,000, as well as increases in prepaid rent, accounts payable, and income tax payable of $40,000, $23,000, and $20,000, respectively. Prepare the operating activities section of the Wonders of Wild Life Statement of Cash Flows using the indirect method: ENTER AMOUNTS SUBTRACTED WITH A NEGATIVE SIGN (-)
Depreciation expense
Increase in Prepaid Rent
Increase in Accounts Payable
Increase in Income Tax Payable
Total Operating Cash Flow
Financial Accounting: A Business Process Approach
ISBN: 978-0136115274
3rd edition
Authors: Jane L. Reimers