For each transaction provided, select the proper section of the statement of cash flows in which it should be reported using the indirect method from the reporting categories provided. If the item is not required to be reported on the statement of cash flows, select ‘Not required’.\

A : Cash Flows from investing activities-Increase as a result of cash inflows

B: Cash Flows from financing activities-Increase as a result of cash inflows

C: Disclosed as a non-cash transaction in the note

D: Apperas in operating activities only under the direct method

E:Cash Flows from investing activities- decreases as a result of cash outflows

F: Cash Flows from operating activities- will be subtracted from net income 

G: Not required

N: Cash Flows from operating activities- will be added to net income 

L: Cash Flows from financing activities-decreases  as a result of cash outflows 

Increase in unearned revenue 

           [ Choose ]             Cash flows from investing activities-increase as a result of cash inflows             Cash flows from financing activities-increase as a result of cash inflows             Disclosed as a non-cash transaction in the notes             Appears in operating activities only under the direct method             Cash flows from investing activities-decrease as a result of cash outflows             Cash flows from operating activities-will be subtracted from net income             Not required             Cash flows from operating activities-will be added to net income             Cash flows from financing activities-decrease as a result of cash outflows         

Payment of cash dividends 

           [ Choose ]             Cash flows from investing activities-increase as a result of cash inflows             Cash flows from financing activities-increase as a result of cash inflows             Disclosed as a non-cash transaction in the notes             Appears in operating activities only under the direct method             Cash flows from investing activities-decrease as a result of cash outflows             Cash flows from operating activities-will be subtracted from net income             Not required             Cash flows from operating activities-will be added to net income             Cash flows from financing activities-decrease as a result of cash outflows         

Increase in investments account 

           [ Choose ]             Cash flows from investing activities-increase as a result of cash inflows             Cash flows from financing activities-increase as a result of cash inflows             Disclosed as a non-cash transaction in the notes             Appears in operating activities only under the direct method             Cash flows from investing activities-decrease as a result of cash outflows             Cash flows from operating activities-will be subtracted from net income             Not required             Cash flows from operating activities-will be added to net income             Cash flows from financing activities-decrease as a result of cash outflows         

Issuance of common stock to acquire land 

           [ Choose ]             Cash flows from investing activities-increase as a result of cash inflows             Cash flows from financing activities-increase as a result of cash inflows             Disclosed as a non-cash transaction in the notes             Appears in operating activities only under the direct method             Cash flows from investing activities-decrease as a result of cash outflows             Cash flows from operating activities-will be subtracted from net income             Not required             Cash flows from operating activities-will be added to net income             Cash flows from financing activities-decrease as a result of cash outflows         

Increase in accounts receivable 

           [ Choose ]             Cash flows from investing activities-increase as a result of cash inflows             Cash flows from financing activities-increase as a result of cash inflows             Disclosed as a non-cash transaction in the notes             Appears in operating activities only under the direct method             Cash flows from investing activities-decrease as a result of cash outflows             Cash flows from operating activities-will be subtracted from net income             Not required             Cash flows from operating activities-will be added to net income             Cash flows from financing activities-decrease as a result of cash outflows         

Increase in Bonds Payable 

Answer rating: 100% (QA)

ANSWER The proper section of the statement of cash flows using the indirect method are as follows 1 ... View the full answer