Which of the following is not an example of a cash flow from operations?
Answer(s): A
Operating activities include the cash effects of transactions and other events that enter into the determination of net income. All of the responses apply.
All of the following are financing cash flows EXCEPT?
Answer(s): D
Cash changes in retained earnings arise from income and hence, are part of operating cash flows.
Accounting rules specify that interest must be capitalized for assets that are
Answer(s): C
Interest costs must be capitalized only for assets constructed for internal use, or for sale or lease as discrete projects.
The deferred income tax account
The difference between income tax expense (based on accounting income) and the actual income taxes payable (based on taxable income) is reconciled in an account called deferred income taxes.
An operating cycle is:
An operating cycle begins and ends with cash. It goes through the full cycle of buying inventory, converting the inventory, generating a receivable and finally turning the receivable into cash.
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