![]() ![]() This noncash investing and financing transaction was inadvertently included in both the financing section as a source of cash, and the investing section as a use of cash. ![]() The company’s policy is to report noncash investing and financing activities in a separate statement, after the presentation of the statement of cash flows. ![]() During this period, the company had purchased a warehouse building, in exchange for a $200,000 note payable. While reviewing the financial statements that were prepared by company accountants, you discover an error. Classification of Cash Flows Makes a DifferenceĪssume you are the chief financial officer of T-Shirt Pros, a small business that makes custom-printed T-shirts.
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