36 net income must be adjusted for changes in assets and liabilities such as 4303733

 

 

36.Net income must be adjusted for changes in ____________________ assets and liabilities, such as accounts receivable and accounts payable, when determining the net cash provided by operating activities. 
 
 

 

 

 

37.A gain on the sale of equipment is reported in the ____________________ activities section of the statement of cash flows. 
 
 

 

 

 

38.The purchase of treasury stock is treated as a cash outflow in the ____________________ activities section of the statement of cash flows. 
 
 

 

 

 

39.Interest expense is treated as an outflow of cash that results from a(n) ____________________ activity. 
 
 

 

 

 

40.The statement of cash flows assumes that the ____________________ basis of accounting is used when recording transactions and preparing the balance sheet and income statement. 
 
 

 

 

 

41.In the ____________________ activities section of the statement of cash flows, net income is adjusted for the amortization of the premium on bonds payable. 
 
 

 

 

 

42.____________________ activities are transactions that involve the acquisition or disposal of assets that will not be used up or consumed in routine operations.