Instructions: Answer the following. i. Highlight all the mistakes if any in the above cash flows statement. ii. Did investing activities cause the company's cash to increase or decrease? Why is it so? iii. Why net cash balance from investing activities is mostly negative? iv. Which GAAP principle is clearly reflecting from above statement? Explain that GAAP principle figured out in (vii)? vi. Why owner invested 80,000 dollars? Why there is no dollar sign with this amount? vii. What do we have to do with final balance? viii. v. What is the reason of mentioning investing activities in the middle? ix. What is the reason of mentioning the financing activities in the end? Why not to mention at the top! Is there any major concern? Or All is well after rectifying mistakes? х.

Instructions: Answer the following. i. Highlight all the mistakes if any in the above cash flows statement. ii. Did investing activities cause the company's cash to increase or decrease? Why is it so? iii. Why net cash balance from investing activities is mostly negative? iv. Which GAAP principle is clearly reflecting from above statement? Explain that GAAP principle figured out in (vii)? vi. Why owner invested 80,000 dollars? Why there is no dollar sign with this amount? vii. What do we have to do with final balance? viii. v. What is the reason of mentioning investing activities in the middle? ix. What is the reason of mentioning the financing activities in the end? Why not to mention at the top! Is there any major concern? Or All is well after rectifying mistakes? х.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 32BE

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