Home » Accounting: Principles of Financial Accounting » Which of the following statements is correct? Which of the following statements is correct? 3. Question 3 Which of the following statements is correct? 1 / 1 point The purchase of new machinery decreases cash from operations. The repayment of a bank loan decreases cash from investing. Cash flow from operations increases when we recognize a credit sale. A payment of dividends decreases cash from financing. Other Questions Of This Category For the remaining questions, please consider the following cash transactions that happened in the company Becker GmbH in 2015 (amounts in €000): · Collections from customers: 500 · Purchase of…Downton Smith Ltd. purchased a piece of machinery on Jan 1st 2013 for €400,000. The company estimated a useful life of 10 years and a residual value of zero for this asset. On December 31st 2015, the…Fibertech GmbH is a distributor of outdoors technical clothing. The company outsources the production of clothing to external manufacturers in Bangladesh and sells the clothing under its own brands.…Which of the following activities would have an effect on the cash flow from financing?What is the gain or loss on the sale of this machinery at the end of 2015?Irwin Company obtained a five-year, €100,000 bank loan at the end of year x0. The principal had to be repaid in equal installments every December 31st starting in x1. The yearly interest rate is 4%…Which of the following events is not an investing activity?The following table shows the balance of certain accounts on the Holmes, Inc. balance sheet at the end of December 31 and the following three-day period. By December 31, the company had not yet…The following table shows the balance of certain accounts on the Holmes, Inc. balance sheet at the end of December 31 and the following three-day period. By December 31, the company had not yet…The following table shows the balance of certain accounts on the Holmes, Inc. balance sheet at the end of December 31 and the following three-day period. By December 31, the company had not yet…Understanding the Cash Flow Statement (questions 1 - 7): Which of the events described below for ZRH Companyis an operating activity?Which of the following statements regarding year x1 is correct?Understanding the difference between cash and profit (questions 4 – 5): The ABC Company recognizes credit sales of €100,000. The cost of the goods sold is €60,000. Answer the following two questions:…The cash flow statement of Le Bernerhof SA showed, for year x2, CFO = €5,500 and CFI = -€10,200. The beginning and ending balances of the cash account in year x2’s balance sheet were €7,900 and…Which of the following activities would not have an effect on cash?
