The ________ section of the statement of cash flows includes increases and decreases in long-term assets.

1 answer:

6 0

The investment activities section of the statement of cash flows includes increases and decreases in long-term assets.

Long-term assets are investment based activities which included equipment used in a business and the building thats built for a business to run in. If you were to sell your long-term assets and make a profit, this would also but included in the investment activities section of the state of cash flows.

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hope this helps

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3 years ago

Eaton Co. sells major household appliance service contracts for cash. The service contracts are for a one-year, two-year, or thr

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Answer:

The correct answer is b. $1,300,000

Explanation:

The computation of unearned service revenue is shown below:

= Outstanding service contracts for 2011 + Outstanding service contracts for 2012 + Outstanding service contracts for 2013

= $380,000 + $570,000 + $350,000

= $1,300,000

The other amounts are not considered in the computation part. So, it is ignored.

Thus, the $1,300,000 is the amount which should be reported as Unearned Service Revenues in Eaton's December 31, 2010 balance sheet.

Hence, the correct answer is b. $1,300,000

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3 years ago

The​ ________ section of the statement of cash flows includes increases and decreases in​ long-term assets.

The ________ section of the statement of cash flows includes increases and decreases in long-term assets.