Are the following true or false? 1.Maya Company\'s purchase of 100 shares of Lab

Question

Are the following true or false?

1.Maya Company's purchase of 100 shares of Labrador Inc. common stock would be reported as a financing activity on its statement of cash flows.

2.The general goal of horizontal analyses is to identify significant trends.

3.When preparing the operating activities section of the statement of cash flows using the indirect method, an increase in Income Taxes Payable is added to net income.

4.Vertical analysis is the comparison of a company's financial information over time.

5.A healthy company typically shows positive cash flows in the financing activities section of the statement of cash flows.

6.The receipts of dividends and interest are both reported as cash inflows from investing activities on the statement of cash flows.

7.Under the indirect method, changes in current assets are used in determining cash flows from operating activities and changes in current liabilities are used in determining cash flows from financing activities.

8.The payment of salaries and wages would be reported as an operating activity on the statement of cash flows.

9.Trend data can be measured in dollar amounts or percentages.

10.Liquidity measures the ability of a company to meet its current financial obligations.

Explanation / Answer

1) false - it is Investing Activities

2) True

3) True

4) FAlse

5) FAlse - A Negative CAsh flow from Financing activity is a sign of a HEalthy company.

6) FAlse

7) FAlse both current assets and current liabilities are shown part of operating activities section of cash flow.

8) FAlse

9) True

10) True

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.