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Unit 8: Cash Flow Statement

12. For each of the following items, indicate which part (out of Operating, Investing, Financing Notes
and Supplemental) will be affected and why.
(a) Depreciation Expense
(b) Proceeds from the sale of equipment used in the business.
(c) The Loss on the Sale of Equipment
(d) Declaration and payment of dividends on company's stock
(e) Gain on the Sale of Automobile formerly used in the business.

Answers: Self Assessment

1. (a) 2. (c)

3. (c) 4. (c)
5. (d) 6. (d)
7. (c) 8. (b)
9. (a) 10. (c)
11. (d) 12. (b)

13. (b) 14. (a)
15. (d)

8.10 Further Readings

Books B.M. Lall Nigam and I.C. Jain, Cost Accounting, Prentice-Hall of India (P) Ltd.
Hilton, Maher and Selto, Cost Management, 2nd Edition, Tata McGraw-Hill Publishing
Company Ltd.

M. P. Pandikumar, Management Accounting, Excel Books.
M. N. Arora, Cost and Management Accounting, 8th Edition, Vikas Publishing House
(P) Ltd.

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