MaeWolfe

01.10.2019 • 

Business

The assets and liabilities of wilderness travel service on april 30, 20y7, and its revenue and expenses for the year are as follows: accounts payable $25,000 rent expense $75,000 accounts receivable 210,000 supplies 9,000 cash 156,000 supplies expense 12,000 common stock 35,000 taxes expense 10,000 fees earned 875,000 utilities expense 38,000 miscellaneous expense 15,000 wages expense 525,000 common stock was $25,000 and retained earnings was $155,000 as of may 1, 20y6. during the year, additional common stock of $10,000 was issued for cash, and dividends of $40,000 were paid. required: 1. prepare an income statement for the year ended april 30, 20y7. wilderness travel service income statement for the year ended april 30, 20y7 fees earned $ 875,000 expenses: $ rent expense 75,000 total expenses $

Ответ:

smcardenas02

06.11.2021

Business

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c. The direct method of reporting cash flows from operating activities includes disclosing the major classes of gross cash receipts and gross cash payments.

Explanation:

The correct statement is C.

As this statement states that, in direct method of cash flow statement, operating cash flows shows, displays significant cash received from major classes and significant cash paid to major classes, showing gross receipts and gross payments.

In indirect method no general cash receipts ad cash payments in operating cash flow is shown, it relates to displaying adjustments in net income, and changes in working capital etc:

Thus, this is the correct statement of all the statements provided.

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