73. Facts: Company X has a collection of customer notes receivable from a customer in the amount of $100,000. How should this change be presented in the statement of cash flows under ASC 230:A. As an inflow in operating activitiesB. As an inflow in investing activitiesC. As an inflow in financing activitiesD. Disclosed only
Added by Andrea A.
Step 1
The collection of customer notes receivable represents cash received from customers for goods or services provided, which is part of the company's normal business operations. Show more…
Show all steps
Your feedback will help us improve your experience
Chandra Jain and 56 other Principles of Accounting educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Recommended Videos
Cash flows from collections on credit sales are usually reported in the statement of cash flows as part of: Operating activities. Financing activities. Investing activities. Noncash activities. This is not reported in the statement of cash flows.
Chandra J.
Question Content Area Which of the following is not a current reporting requirement for a statement that reports changes in cash over a period of time? a. The title for this statement is "Statement of Cash Flows." b. This statement must classify cash flows into three categories: operating, investing, and financing activities. c. Working capital may be used as a substitute for cash in preparing this statement. d. Cash equivalents must be combined with cash in preparing this statement.
James K.
Information from the company's financial records is presented below: Notes payable, December 31, 2022 $1,000,000 Notes payable, December 31, 2023 1,200,000 Loss on Note retirement—2023 45,000 Interest expense on bonds—2023 75,000 At the end of 2023, the company issued notes at par value for $1,200,000 cash. The proceeds were used to retire the $1,000,000 note issue outstanding at the end of 2022 (before their maturity date). All interest expense was paid in cash during 2023. The following statements describe how the company reported the cash flow effects of the items described above on its 2023 statement of cash flows. The indirect method is used to prepare the operating activities section. Which of the following has been reported incorrectly? a. Proceeds of $1,200,000 from the issuance of notes were reported as a cash inflow in the financing activities section. b. The loss on note retirement of $45,000 was added to net income in the operating activities section. c. Payments of $1,260,000 were reported as a cash outflow in the investing activities section. d. Interest expense of $75,000 was not reported separately because it is included in net income in the operating activities section.
Recommended Textbooks
Horngren’s Cost Accounting
Cost Accounting A Managerial Emphasis
Principles of Accounting Volume 1: Financial Accounting
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD