Question & Answer: Which of the following statements is true regarding the statement of cash flows? Payment of cash dividends on common stock is a financing…..

Which of the following statements is true regarding the stetement of cash flows? Check i that apply Payment of cesh dividends on common stock is a financing use (decrease) of cash The net Increase in cash for the year is equal to the sum of the net cash provided/used by operating, Investing, and financing activities Ota current Blablity account increases for the year, this will show up as an operating source Gncrease) of cash The decrease In accounts payable for the year ls shown as an opereting source Oncrease) of cash lfacument asset account increases for the year, this vill show up as an operating source pnorease) of cash Think so No idea 6 Items left Read

Which of the following statements is true regarding the statement of cash flows? Payment of cash dividends on common stock is a financing use (decrease) of cash. The net Increase in cash for the year is equal to the sum of the net cash provided/used by operating, Investing, and financing activities If a current Liability account increases for the year, this will show up as an operating source (increase) of cash The decrease in accounts payable for the year is shown as an operating source (increase) of cash If a current asset account increases for the year, this will show up as an operating source (increase) of cash

Expert Answer

Answer is A, B, C.

Payment for Common Stock (Dividend or Redemption) is a use of cash and is shown as Decrease in financing activity.
The net increase or decrease in cash during the year is equal to the sum of the net cash provided/used by operating, investing and financing activities Which can also be defined as Net Change in cash from various activities.

An increase in current liability is shown in operating activity as source (increase) of cash, whereas a Decrease in Current Liability is shown as Decrease of Cash.

An increase in Current assets is shown as Decrease in Cash and decrease in Current assets is shown as Increase in cash under Operating Activities.

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