Aug 03, 2012 · 22. Which balance sheet accounts are most affected by operating activities? A. Current assets and current liabilities. B. Long-term assets. C. Long-term liabilities. D. Stockholders' equity.
Jul 23, 2014 · In calculating cash flows from operating activities using the indirect method , an increase in accounts payable is. a. added to net income . b. deducted from net income . c. ignored because it does not affect cash . d. not reported on a statement of cash flows . Answer: A . added to net income . 22 .
Jul 22, 2019 · 32. Upon review of Young’s Garden Center statement of cash flows, the following was noted: Cash flows from operating activities $15,000 Cash flows from investing activities 80,000 Cash flows from financing activities (60,000) From this information, the most likely explanation is that Young’s is A. using cash from operations and selling long-term assets to …
Operating: On the balance sheet, operating activities affect current assets, such as cash, accounts receivable and inventory, and current liabilities, such as accounts payable and wages payable. The revenue and expenses reported on the income statement also reflect operating activities. Financing: In the financial statements, equity financing shows up in the owners' …
Which balance sheet accounts are most affected by operating activities? Current assets and current liabilities.
What Is Included in Operating Activities?Cash receipts from sales.Sales of shares.Income earned from investment.Settlements of lawsuits and insurance claims.Accounts receivables collection.Supplier refunds.
Operating Activities This section of the balance sheet reports your company's net income, converting it from accrual to cash basis. It does this by analyzing the changes in your current assets and liabilities.Nov 21, 2013
Assets for the balance sheet include cash, inventory, accounts receivable and prepaid accounts. Buildings, land and equipment owned by the company are categorized as assets on the balance sheet. Assets represent the equity in the business. As the value of the assets increases, the equity in the business increases.
A balance sheet is a financial statement that reports a company's assets, liabilities, and shareholder equity. The balance sheet is one of the three core financial statements that are used to evaluate a business. It provides a snapshot of a company's finances (what it owns and owes) as of the date of publication.
The correct answer is option b) The balance sheet reports the assets, liabilities, and stockholders' equity at a specific date.
There is typically an operating activities section of a company's statement of cash flows that shows inflows and outflows of cash resulting from a company's key operating activities.
Like current assets, current liabilities are balance sheet items relating to operating activities.
Operating current assets are those short-term assets used to support the operations of a business. In most organizations, the key operating current assets are cash, accounts receivable, and inventory.May 13, 2017
Basic Accounting EquationTransaction TypeAssetsLiabilities + EquitySell goods on credit (effect 2)Accounts receivable increasesIncome (equity) increasesSell services on a creditAccounts receivable increasesIncome (equity) increasesSell stockCash increasesEquity Increases7 more rows
Every transaction in a double-entry accounting system affects at least two accounts because at least one debit and one credit for each transaction. Usually, at least one of the accounts is a balance sheet account. Entries that are not made to a balance sheet account are made to an income or expense account.
Most transactions typically affect either of the following: Only balance sheet accounts. When a company borrows money, its asset account Cash increases and its liability account Loans Payable increases.
On the balance sheet, you classify assets as short term, which includes cash and inventory, or long-term, which includes property and equipment. Short-term liabilities include account payables and lines of credit; long-term ones include mortgages and term loans. Owner's equity includes initial and additional contributions and retained earnings. The change in your short-term assets and liabilities from one month's balance sheet to another reflects the impact of your company's operating activities. In addition, net income from the income statement at the end of the year will show up in retained earnings on the balance sheet at the beginning of the next year.
The cash flow statement, which maintains a record of how a company's revenue and profit-generating -- its operating activities -- impact cash. It also records how your company uses its assets, how it incurs liabilities or how capital affects its cash flow and net cash position. Because of its intermediary position, the cash flow statement provides the information and data that clearly illustrates how your company's operating activities transfer to the balance sheet.