Accounting 2037 Mizzou Exam 3 Test Questions and Answers.

What three accounts are affected when a company issue shares of stock? - Answer Cash (+), Common Stock (+) Additional Paid in Capital (+) What accounts are affected when a company reacquires shares of its own stock? - Answer Cash (-) Treasury Stock (+) Cash Flows Statement broken down into what three sections? - Answer Cash Flows from operating activities, investing, and financing Cash flows From operating Activities includes: - Answer 1.Net income, tments for differences between net income and cash from operating activities, 3.Add: Depreciation expense, decrease in accounts receivable. 4.Less: decrease in accounts payable 5.Net cash provided by operating activities Cash Flows from Investing Activities includes - Answer 1.Cash payments for property and equipment payments for investments in stocks and bonds, receipts from sale of property and equipment, receipts from sale of investments in stocks and bonds Cash flows from financing include - Answer receipts from issuance of notes and bonds, receipts from sale of COMPANYS OWN stock, payments of notes and bonds payments to reacquire company's own stock, 5. cash payments of dividends Market Value Method - Answer Less than 20% ownership Possible accounts affected in the market value method - Answer tment in avail. for sale securities 3. unrealized increase in investment