Apex CPE Home |Courses |My CPE |About Us |Resources |Site Map COPYRIGHT 2002-2009 Apex CPE - ALL RIGHTS RESERVED Where does prepaid expenses go on the cash flow statement?The amount reported as (Increase)/decrease in prepaid expenses in the reconciliation section of the statement of cash flows must tie to the difference in prepaid expenses between the previous fiscal year and the current fiscal year as reported on the balance sheet.
How does a decrease in prepaid expenses affect cash flow statement?A decrease in prepaid expenses results in an increase in cash flow. Operating expenses are typically paid on a monthly basis, which is why any reduction in prepaid expenses will immediately benefit cash flow for the current month.
What kind of activity is prepaid rent?Prepaid rent is an asset because the prepaid amount can be used in the future to reduce rent expense when incurred.
Which of the following would be classified as financing cash flows on a cash flow statement?Answer and Explanation: Both a) interest paid to a lender and b) dividends paid to the company's common stockholders would be classified as financing activity on the statement of cash flows. Both of these activities are cash outflows that maintain financing from loans or the issuance of stocks.
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