Module 2 Statement of Cashflow

In preparing statement of cashflow statements using indirect method, proceeds from issuance of shares are classified under

• Operating activities

• Investing activities

• Financing activities

• Not included under any

In preparing statement of cashflow statements using indirect method, proceeds from sale of buildings are classified under

• Operating activities

• Investing activities

• Financing activities

• Not included under any

In preparing statement of cashflow statements using indirect method, collection of cash from customers are classified under

• Operating activities

• Investing activities

• Financing activities

• Not included under any

In preparing statement of cashflow statements using indirect method, increase in inventory is

• classified as operating activity and added to income

• classified as operating activity and deducted from income

• classified as financing activity

• classified as investing activity

In preparing statement of cashflow statements using indirect method, increase in accounts payable is

• classified as operating activity and added to income

• classified as operating activity and deducted from income

• classified as financing activity

• classified as investing activity

In preparing statement of cashflow statements using indirect method, decrease in prepaid expense is

• classified as operating activity and added to income

• classified as operating activity and deducted from income

• classified as financing activity

• classified as investing activity

In preparing statement of cashflow statements using indirect method, gain on sale of land is

• classified as operating activity and added to income

• classified as operating activity and deducted from income

• classified as financing activity

• classified as investing activity

In preparing statement of cashflow statements using indirect method, payment of dividend is

• classified as operating activity and added to income

• classified as operating activity and deducted from income

• classified as financing activity

• classified as investing activity

In preparing statement of cashflow statements using indirect method, purcahse of equipment is

• classified as operating activity and added to income

• classified as operating activity and deducted from income

• classified as financing activity

• classified as investing activity

In preparing statement of cashflow statements using indirect method, depreciation expense is

• classified as operating activity and added to income

• classified as operating activity and deducted from income

• classified as financing activity

• classified as investing activity