which-of-the-following-represents-a-source-of-cash-in-the-investing-section-a-sale-of-investments-b-

Question

Which of the following represents a source of cash in the investing section?
A. sale of investments
B. depreciation expense
C. decrease in accounts receivable
D. decrease in bonds payable

Puneet Prajapati · Accepted Answer

Okay, So you are going to understand They don&#x27;t deposition, Okay? Little concepts. That How movie? The Gordie charging more in that position. Expense. Okay. The 1st 2 the amount off expense, most of the amount of experience that would be charged. Who comes who? The select beer and off a sect on yearly basis. Okay, so this definition shows that the deposition is an amount which is charged who income and income statement who show that baby is dearly the reason value of the asset, if you will use the except for of it production, Get a city. Okay, let&#x27;s suppose you have purchased the machinery on starting off your business, okay? To produce for nature processed Jaber air chairs and tables like that. Okay, so if you have purchased machine beyond first and very 2019 then let&#x27;s suppose you have purchased off $1000. So will actually remain same or the upcoming years. No, it&#x27;s not revenge. It will be decreasing. Okay. The value will decrease by that. So because it&#x27;s it will be used accordingly. Produced the for me. German. Did it hurt? Okay, so regard the deposition. We have first method that he will do like this. They record two types of entries. Okay, Their position, account epic. Who? A cynical. Okay. And it will be about this is the general in three. Okay, we have passed. Imaginative. So this is a direct entry to the court in that position, Like the deposition will be judged Do the respective, like machine three or any table for nature that is used for business purposes. Okay, so and it is a second mattered. And second method is used very because it very widely in the industry. And there&#x27;s a magnet off for security purposes. Basically. So that position account deputed to acumen into that position. Okay, so so in second method, what we have didn&#x27;t understand first method. Then they will face problems later, toe that however, we will understand. Second method. So it is the expense. It will be transferred to income statement. Okay. Like it down. This is the that. I don&#x27;t before shoot in second shoot for your difference. Okay? And I don&#x27;t do that. Precision expense will be transferred to incoming statement. Then I did actual profit and loss. Okay. However, a community that position will be shown in bed and cheap Okay, Now why do we use second method Will understand this. That&#x27;s first of all. See this? That gift their position expense is charged in first matter. Then I said value is also decreased by the proportionate amount. OK, but in second method, what happens? The assert is reflected and violent Shoot at the actual cost. And the person that it is an expense charge on the early basically transfer through the circle community deposition who see So the identity will be able to see that Helmand deposition expense. We have charged so on. Okay? And how much book value off A sets an actual cost of asserts via having like no one ever Belen. Shit. Okay, so that is right. Accumulator deposition will be transferred to that and cheat. Okay. And back matches that matches. So the solution matches with the choice A. Okay, so the correct choice is choice. Okay. Always you can write. She&#x27;d violent you do for your future reference. That&#x27;s all for our current solution. Thank

Puneet Prajapati · Answer

I understand being meaning off on welcomes. Okay? Sort of. But that people understand There what is the actual implication or P State comes. Okay, so just the type of account. Okay? Which will have opposing effect on the previously gender. A couple dependence is okay. Although we have returned our technical definition here now, I ve vill understand this stipulation through an example. So let&#x27;s suppose there is the Mr B. Okay, who isn&#x27;t dealing off? Let&#x27;s video games. Okay, So, Mr Reyes dealing in business off Williams and Mr C is a trustworthy customer off Mr B. No. What happens, Mr. ISS Cell, So I didn&#x27;t read begins to Mr C. Okay, so after selling video games Mr A has recorded Let&#x27;s it $1000. As is revenue. Now what happens after receiving the video games for Mr A Mr Sea verifies that the video games that mark I find it really gives. OK, So what happens? Mr Cedar? Don&#x27;s back. Mr. C returns back those video games too. Mr. B, seeing that that the games that fight occurred So the actual work which which Waas which were done? No mystery boss. 500 voters. Okay, so these are there? Does Sailor does know what happened? What is what is the actual implication off contract count? Is that that then Mr is sold? We do games must to see there is never a balance off $1000. It means it visited the comfortable from Mr C. Okay, the governable from Mr C. But whatever, Mr. C return games worth off $500 to Mr A. Okay, so that the next recoverable about from Mr C as a customer now will be $500 only. Okay, so it is a sailor dunce. Okay, this is a sailor turns off $500. Now these account so sales this town will be off contra. They&#x27;ve a new accounts. Like, if it really was down on the Children renewed. That has been previously gender. Okay, so now that matches with our current solution matches with joy, See that this is this found. Okay, so that&#x27;s so you can write down what I everything so far, along with the example for everything. Okay. However, Jean saw Joy sees the correct answer. That&#x27;s all for the solution.

Puneet Prajapati · Answer

Okay, so let&#x27;s understand the current problem. Okay? So to begin with, we will start with the, you know, counting the basic accounting question. And then we will move to our main solution. Okay, so it&#x27;s a said minus lovely piece equals store equity. Okay, so let&#x27;s say to understand this basic accounting question. First of all, we need to understand that. What does the counting the question say&#x27;s Okay, so let&#x27;s suppose you are Oh, you are dealing in the business off selling real games. Okay. By selling the video game to the customers, you have generated revenue off housing. $1000. Okay, $1000. Bye bye. I every $1000 under the asset, I will tell you. So let&#x27;s suppose that you have sold the video games to your customers, but you are able to receive them out. Attn. This part okay, your customer is likely to pay you off. Let&#x27;s after 30 days of Peter. Okay, So whatever the amount that is receivable active at the future pointing, dying, that amount is known as a sec. Okay, So even if you have sold the video games to the customers, but still you have not been paid that amount is irrecoverable from the customer, so that will be considered as your I said. Okay, let&#x27;s suppose in processing the material of video games, do you need to purchase the material from someone else like your supplier so that you can persist the video games in tow? Saleable product. Okay, so for that you have imported someone from the outside of the country, okay? And you have important material off $500. You have important material of $500 by I have returned $500.50 head liabilities because a liability is an amount people for the for the benefits that has bean avail. Okay, Lake the or in simple terms, we can say liabilities and is an amount which is people like the future point at the future at a future point in later. Okay, Now, what is the equal devotion? $500 housing minus. I wondered because 500. What is this fight? One day? You can completely, you know, interpret this through the question that so they could be thrown business after being off all the ladies. Okay, so let&#x27;s support if you have $1000 deficits. Do you have Thompson, owners of physics. How that are They&#x27;re recoverable from the customers, but no. What happened? You have also liabilities off 502. You have to obey them. So after netting the recoverable and table amounts, you have $500 of equity backed that. It&#x27;s your personal amount that you will take up with this amount. A killer who, because that is a lian free amount you in free means nobody has the right to, you know, detached that amount from yourself. Because it is that take away from the business after being off all the liabilities. Okay, so we have understood the basic part of the question. Now, let&#x27;s move, lover. Basic salute. Those main solution. Okay, so in the portion we have been asked, that vote will be the effect on the both sides of the equation if us is hookers. Okay. That is to a very simple part. I mean, you have. Okay, he&#x27;s the potion Say&#x27;s that the sale even has been aboard. So let&#x27;s say it is a guy I see. Okay. Now, if there is a cash sale, okay, we have initial. I think we&#x27;re not supposed to write it here. Okay, let&#x27;s first, you know, just get the initial initial initial Ramones like they are in tow. You know, business offices selling. You do games to other customers. So we have initial amounts. No more confused. I&#x27;m just taking them all from this one. This one in this way. $1000 opposites. They&#x27;re recoverable. $500 off liabilities. 500 on herself, Equity. Okay, Now you have understood the basic concept of accounting. Question? No, let&#x27;s move to the solution. Okay, let&#x27;s suppose we have a cash sale of 500. Okay? No, if I will sell the video game, and against that, I will receive cash. What will happen? My sex. I will also increase because the asset also include the cash available with the business entity. Let&#x27;s suppose let&#x27;s suppose we have a company, Okay, but the s excited will also include the cash available in the business like we used to keep cash, you know, hard cash in the cash drawers. Or we can say our bollards are some some other type of stuff in which we can, you know, keep outta cash. So they will be $500 sale if if If we have you know, made a sale of $500 in cash than assert side of Greece. They will be more liability by there. So because we have because for for making this sale, we have incurred no type off liability. Okay? We have because I&#x27;m just supposing that I&#x27;m just making this is an example to make the solution here. Okay. So as we will sell the video game on cash on a cash basis So we will realize that cash around off 500 which will be included in the outside as the cash balance. Okay. No one the opposing side of the question. What will happen? See the motive for the businesses to own profit and what is actually profit? Nothing in the profit is simple. Everyone knows this. Okay, See, it&#x27;s minus expenses. So if vehicle in Greece ever since, they will be increasing profits off, if you will in Greece, other expenses, they leave degrees in Crawford&#x27;s. Okay, So, like flies, if there is increase in sales increasing states. So the secret about that will be your takeaway. After paying off all the liabilities be greater by that. So because you have made sales more than before. Okay, like you have made extra sense or you are making revenues, so your take of it will be greater. It is very, very office. Right. So you&#x27;re 500 will be. I do. Do you? In your big of it. Okay. So words the neck current. What is the net effect of the tradition? It&#x27;s this one becomes 15 under. This will be a sickness 500 and this will be $1000. Okay, so what is the net effect? What is the net effect on the both sides of the question? This this we have as the initial level. This we have after considering the transaction. So you can see there is a 15 and $500 increase. There is also $500 increase. So the correct solution we can conclude for the problem. 27 is e. Okay, so the correct choice. Okay. So you can derive the deny dissolution by forming the, you know, basic complication. Because without informing the question, you will not. You will not reach anybody. Anything. Okay. So tax are for the current solution. Thank you.

Puneet Prajapati · Answer

Okay, so let&#x27;s understand the solution. Okay, But to begin with, the 1st 1st start And how many times of Combs you do have another thing coming? Most of all, sex, Captain. Liabilities, expenses, even you. Okay, so you can write it down. It will be very important for you, you know, summarize the rules, which I&#x27;m going to write order by that. So it&#x27;s inside, but it covered in the remote. Like, let&#x27;s suppose you are and do business off setting video games are sending any type of just offices to your customer. So let&#x27;s suppose your customer say&#x27;s that I will pay you off after Peter Activities. Okay, so that tomorrow will become recoverable after Peter after a certain period of opportunities. Okay. No, such a month will be considered as a sex. Such amount will be known as a sex. Okay, uncomfortable emotions, Gash. Banged like these lets me go extinction. Okay, So capital is a goody, or is it pretty? What does preference difference share capital as as for here. See, for capital you can I do for you appreciate capital. Okay, So the capital refers to the amount which is raised internally within the overall vision or externally, out of the organization who financed the business. Okay, so fancy pool activities are becoming That&#x27;s supposed we have. We are willing to start our new business, but supposed But suppose we have We are sort of exercise off now. So what you will do? We will raise funds from outside of the company, like from the investors were willing to invest in the new companies. Okay, so that will be considered as capital. However, you can also understand from this that of capitalism liability because it&#x27;s a supportive you are. You have investors, and they are investing in your phone. It is very very office that they are, like, literally could it there, Mr. After a certain period of time. Like, let&#x27;s suppose, after 20 to 30 years. Okay. Okay. But as of now, understand this. This is a capital. It could be preferential capital. Okay, level. These are Babel, the most short term neck sharp. Someone long necked. Even the moms are These are the moments with Jack people. After a certain period of time, like suppose you have a Ford manufacturing company. Okay, So, due process, they say level correct. Okay. You have to purchase the raw material from somewhere reds. So if you have purchased the normative some from some billions, then you have to pay to demonstrate your suppliers also. Okay, So infinity. So whenever the alone becomes people after you have a veil, the benefits off the supplies that among will be considered as liberties. Short term. Didn&#x27;t love him there, as you are. Very very. You will be very, very familiar with this legs. Next. I suppose you have. You take loan from banks to purchase the house, but she&#x27;s different times. Or purchase different each other vehicles, ours electric tricycle deeds, type off short and long term bet will be classified under. Okay. What? Our expenses. Okay. Expenses, everyone, there is no Okay, So these are the moans in guard bar business only business expenses will be considered as expenses. Not, of course, the expenses. Okay. It lets you supposed businessman is also because you didn&#x27;t expense off marriage off his own in the business. And, Lord, we consider it will never be the case. Okay. Expenses that ever knew makes is emergency services. So these are five type of colors we will have throughout the accounting. You are the only thing when I see accounting, it means throughout the accounting, because the different countries Okay, let&#x27;s the basic accounting rules first apart, you can also write it down. These are actually diamond ruins of accounting. However, only a part off it. I&#x27;m going to write it here now for I mean solution. Okay. Diamond in Suffolk County? No, in Greece in. Okay, I will write the full of all the news. OK, first rule is this in grazing a set and expenses, we&#x27;ll always be Devon water. Never. How are they? Never did importance. They are diverted. They will explain later. Mingle face much detail problem about this. Okay. The grease in a sect expenses are all this credit. These are their diamond rules of accounting. However, if you try to find the science behind this, there will be no una pause. There will be no possible or logical reason behind this. That by these are crediting the street of being diverted. They will be most girls on which you can call raise portions of our back. Okay. These are Dr Regional Foods and the after all of this Elevens. Okay, Ingres in. I have a new capital Okay, I have a new capital. Hey, Liabilities are always the credit. Are always credit. It has the reason you have a new capital. Liabilities are always never please I D&#x27;s Diamond, whose these will be very, very important for you some guy&#x27;s dick time or before your exams. Okay, so forward by that we ever understand that the evidence this the next time to our basic solution. But it stays. Which of the falling accounts will be increased after I&#x27;ve never Okay, so we have seen only a set and expenses if there isn&#x27;t increasing and second expenses, David, we&#x27;re never so, First of all, we have to identify that our doctor four items even in the ocean, which is the asset so accepted, except the three choices you have. We have only supplies. As I said, supplies that you can also wrote it down this re force, the invent three, which we have what changed from over Suppliers don&#x27;t go to use saleable, and Ben isn&#x27;t seal even protect. It means the product in which we are mainly dealing okay? No. So the correct choice. So this should be considered as a set by there. So because via the, uh, We have these supplies as part of our Henry. So by possessing this, leaving police ever finished schools that will be sold to other customers. Okay. You know, it&#x27;s all taken alternative name in Wendy as an alternative to name supplies. So the correct choice four of 29 is see? Okay, so these type of these are defined type of accounts, but you have to remember, And although you will get a handle on it when you will you look at this detail problem. These other diamond was like, You have to You have to remember this. Okay? And you have to revise before your exams doing the exam. If you get through this order by that, we have a deal. I have a solution for a problem. 29 which is See, Thank you.

Puneet Prajapati · Answer

Okay, so let&#x27;s understand the current problem. How to drive the solution. Okay, First of all, we will draw our basic accounting question which will help us in diving. The solution, okay, is it&#x27;s minus liabilities. He was still equity. Okay, so this is the basic accounting question we have in front of us. But what does this accounting question says? Let&#x27;s understand. Suppose you are in business of a restaurant making making very, very grateful delicious to the to your customers. Okay, so you have, you know, sorted. And you have also on land delivery segment to your customers. But sometimes what happened? Your customers say that I really, really I will pay you after some week or a month. Let&#x27;s suppose in that case also, however it is not. It is not possible in real boy. But let&#x27;s suppose for our example. Okay, so suppose your five customers have said that they will pay you are they will pay you off after a month. And that is the amount totaling off $10,000. Okay, $10,000. So before you sold before you sold off the foods and beverages to your customer, you will also have to buy the raw material. You know, raw material to process the actual food into the into the actual, you know, act a bill. Edible food. So you have purchase some some off the material from the suppliers. All 5000 but the among has not been paid yet. Please remember my words. The asset is the amount which you are likely to receive from your customers along it. That if you have, let&#x27;s say if you have initial cash balance off 5000 voters, that will also be considered as assets that you are actually owning. Okay, so the total assets will be $15,000. However, there there is only 5000 off level, please. Okay. The library Is that the amount which are still people? Let&#x27;s suppose you have incurred the telephone expenses for generally month off $1000. Okay, But you have come to know factory, but still and you have also Oh, you always have to pay for every expert telephone expenses. But the generally telephone expenses will be considered as your liberties nor of the celebrity by that. So because the because the time or the due date the due date for making Jen very telephone expense payment has bean passed off. So that is why the amount that which is due, which is due to be paid will be considered us liability. Okay, so what is the portion of equity? Actually, with $10,000 what is they? Could be. It is nothing, Berta. Take of it from the business in in in very, very symbolic downs. However, and Dale, we will understand this. Also that were the actually worked out, actually, components of the inquiry. But as of now, in very, very simple terms to make the question more interpret Table the cookie is a take of it from the business after being off all the ladies. Okay, Now let&#x27;s come to our question. We have understood what is the meaning off a sex. What is the meaning of liabilities? And what is the meaning off equity? Okay, Now let&#x27;s come to live with me in question, which is our, well, most concerned. Okay, so let&#x27;s most of all right, d question. So the question is asking from us that if let&#x27;s say we are likely to receive $10,000 which we have just stated. Okay, which we are. We have just stated that what type off the that we&#x27;re likely to receive $10,000 okay from other customers, which is that remote. And suppose we have libraries off $5000. So already cooties $5000. This is the peak of it. But the portion is saying like the supposed we have received 5000 from the customer who has received our four billion resurfaces. Okay, which the customer has paid $5000 to us who have received the benefit overs benefit of goods and services. So if let&#x27;s say I have to this it&#x27;s a tour. In total, I was having $15,000 bye. $15,000 at the initial level. I have. So I would like to hear $15,000. Okay, but know what happened? I have received $5000 from our customer. So what will happen? So this is the total amount we have right now in comes off amount feature which were likely to receive, plus the 5000 of the $5000 off the cash. We do have an hour cash drawer. So vehicle Dylan, the $5000 by there. So because we have received from our customers So 5000 is the amount which we have received from this from this 10,000. This one. Okay, this is the 5000 we have received. Now, if we are going to deduct the balance off the amount with which we&#x27;re likely to receive so they will be an occasion off the $5000 also. Why? That&#x27;s so Because we are receiving the cash from the customers. It is just electing effect. It will not effect any any off the element of the question right now. But let&#x27;s focus is I know it will be clear toe. Rick, you&#x27;re to most of you. But let&#x27;s understand it. In most elevated terms, let&#x27;s suppose if I have a set, okay, in next she that I will be going this minute because it would be, you know, convince him in that cheap. So I have a sex off 10,000. Okay, I have a sense of 10,000 I&#x27;m likely to receive. Okay. I&#x27;m like, you&#x27;re like you do receive $10,000. Some customer has paid, paired me off $5000 but this this amount will be reduced if the parents off the amount which were like to receive which were like to see will be reduced then against that, because there are double effect off the every financial transaction. The rules is the rules is the rule of accounting. Question. Please write it down so that you can we get a clear idea. What? I&#x27;m actually seeing the full effect off every financial conviction. Okay, so what is the double effect? First of all, David decrees in my balance of debtors that there&#x27;s that amount which from Azad the persons from which were likely to the city payment. Okay, so they will be degrees in a sex or they will be in the green in balance. Okay. And again, they would be double effect. So first affected, this seven effectively, they will receive the cash from our doctors. So that is clear. Okay, now let&#x27;s come to the basic counting, wishing so there will be no change. Buy that So because minus 5000 plus 5000 it will be both squared off. Okay? Minus plus equal to zero. 15,000. $15,000 of a six $5000 off liabilities will again come. Go $10,000. So initially it waas 15,000 minus five equals to $10,000. Let&#x27;s make it $10,000. Don&#x27;t confuse that via my going right. $10,000 in studio initial $5000 normal. That&#x27;s the case that $10,000 We have initially sex like cash, bus conductors and minus lively days. So it will be 10,000 lives. Okay, so there will be no change in the either side of the equations. There will be no change before doctors before the drug addiction situation. And that is after the damage institution. Okay, so the correct choice for problems in physics is D. Which says what? What does what does the choice de ces that neither of the site changes? Okay, decide remains constant. And this same remains constant after the transaction be ever recognized. Okay, so the correct choices problem 26 is the That&#x27;s all for the solution. Thank you.

Problem

Which of the following would be included in the f…

Problem 12 Easy Difficulty

Which of the following represents a source of cash in the investing section?
A. sale of investments
B. depreciation expense
C. decrease in accounts receivable
D. decrease in bonds payable

Answer

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Principles of Accounting Volume 1: Financial Accounting

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Principles of Accounting Volume 1: Financial Accounting

Mitchell Franklin, Patty Graybeal, Dixon CooperPrinciples of Accounting Volume 1: Financial Accounting

Mitchell Franklin, Patty Graybeal, Dixon Cooper

Principles of Accounting Volume 1: Financial Accounting