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SCF_Quiz

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4 views

SCF_Quiz

Uploaded by

Geofrey Rivera
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Transactions A. Activities B.

Effect
1. Sales of marketable securities for cash at more than their carrying value.
2. Purchase of land on account
3. Sale of merchandise with deferred payments (one-half within one year and one-
half after one-year)
4. Proceeds of bank loan for 3 years
5. Reclassify noncurrent receivable as current receivable.
6. Additional cash contribution from shareholders
7. Payment of current portion of long-term debt.
8. Dividends paid to shareholders
9. Collection of an account receivable.
10. Provision of uncollectible accounts
11. Recording the cost of goods sold.
12. Collections of previously accounts written off
13. Purchase of inventories on account.
14. Partial payment of bank loan
15. Accrual of sales commissions (to be paid at a later date).
16. Accrual of expenses
17. Payment of accounts payable (resulting from purchase of inventory).
18. Payment of accrued expenses
19. Net income
20. Provision for depreciation of building
Instructions:
1. In Column A write OA if operating activities, IA if investing activities, FA if financing activities, and NO if
none of the following activities.
2. In Column B, write the effect of the transaction. + for increase, - for decrease, and 0 for no effect in the
amount in the statement of cash flows.

Transactions A. Activities B. Effect


1. Sales of marketable securities for cash at more than their carrying value.
2. Purchase of land on account
3. Sale of merchandise with deferred payments (one-half within one year and one-
half after one-year)
4. Proceeds of bank loan for 3 years
5. Reclassify noncurrent receivable as current receivable.
6. Additional cash contribution from shareholders
7. Payment of current portion of long-term debt.
8. Dividends paid to shareholders
9. Collection of an account receivable.
10. Provision of uncollectible accounts
11. Recording the cost of goods sold.
12. Collections of previously accounts written off
13. Purchase of inventories on account.
14. Partial payment of bank loan
15. Accrual of sales commissions (to be paid at a later date).
16. Accrual of expenses
17. Payment of accounts payable (resulting from purchase of inventory).
18. Payment of accrued expenses
19. Net income
20. Provision for depreciation of building
Instructions:
1. In Column A write OA if operating activities, IA if investing activities, FA if financing activities, and NO if
none of the following activities.
2. In Column B, write the effect of the transaction. + for increase, - for decrease, and 0 for no effect in the
amount in the statement of cash flows.

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