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Operating activities
Revenues are reported on the income statement in the period in which they are earned.
Accumulated Depreciation is reported on the balance sheetbecause it deals with the assets. However, depreciation expense is mentioned on the income statement.
Accumulated Depreciation is reported on the balance sheetbecause it deals with the assets. However, depreciation expense is mentioned on the income statement.
is a ten year bond issued at par reported as a non-cash flow in a statement of cash flow?
Operating activities
Under indirect method net income from normal income statement is adjusted for non cash items to arrive at cash flow from operating activities. As salaries and purchases are already accounted for in normal income that;s why it is not reported otherwise it will count twice.
Free cash flow is the sum of operating and investing cash flows, which are reported on the cash flow statement.
Scope Statement of Cash Flows1. Consolidated cash flow is a financial statement that presents information about the company's cash receipts and disbursements during the accounting period.2. The purpose of cash flow statement is to provide information on sources and uses of cash and cash equivalents during the period of accounting and cash reconciliation at the beginning of the period with cash at the end of the period plus the cash equivalent balances.3. The general form of the cash flow statement shows cash receipts and disbursements are divided into three categories, namely: cash flow from operating activities, cash flows from investing activities and cash flows arising from financing activities.4. Operating activities are the principal revenue-producing activities of the company (principal revenue producing activities) and other activities that are not investing activities and financing activities. Cash flows from operating activities can be reported with the use of two methods, either directly or indirectly.5. Investment activity is the acquisition and disposal of long-term assets and other investments that do not include cash equivalents.
Land purchased is shown under cash flow from investing activities in cash flow statement.
a credit card discount would be a credit, not an expense.
Modifier -26
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land purchases is part of cash flow from financing activities as a reduction in cash.
prepaid insurance is shown under cash flow from operating activities as reduction of cash flow or cash outflow.
Revenues are reported on the income statement in the period in which they are earned.
Investment in stocks is shown under cash flows from investing activities and this activity reduces the cash or it is said to be a cash outflow.