Acc 206 Week One Assignment

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ACC 206 Week Assignment Please complete the following 5 exercises below in either Excel or a word document (but must be single document). You must show your work where appropriate (leaving the calculations within Excel cells is acceptable). Save the document, and submit it in the appropriate week using the Assignment Submission button. 1. Critical Thinking Question: Answer the following questions: Why are noncash transactions, such as the exchange of common stock for a building for example, included on a statement of cash flows? How are these noncash transactions disclosed? According to our book, Principles of Accounting: Volume ll, states, “Such transactions do not trigger a direct inflow or outflow of cash, but they are nonetheless highly significant investing/financing events” (N.A., 2012, para. 8). When considering the case of exchange of common stock for building there is no flow of cash. This implies that they are disclosed as footnote in the statement of cash flows. 2. Classification of activities Classify each of the following transactions as arising from an operating (O), investing (I), financing (F), or noncash investing/financing (N) activity. a. ___I_____ Received $80,000 from the sale of land. b. _____O ___ Received $3,200 from cash sales. c. ____F____ Paid a $5,000 dividend. d. __O______ Purchased $8,800 of merchandise for cash. e. ___F_____ Received $100,000 from the issuance of common stock. f. __O______ Paid $1,200 of interest on a note payable. g. _____I___ Acquired a new laser printer by paying $650. h. ___N_____ Acquired a $400,000 building by signing a $400,000 mortgage note. 3. Overview of direct and indirect methods Evaluate the comments that follow as being True or False. If the comment is false,

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