024 Operating, Investment and Financing Activities Flashcards
What is the cash flow category for principal payments on short-term and long-term loans (from financial institutions or dealers) made to acquire plant assets?
The category is Financing.
What is the cash flow category for principal payments on short-term and long-term loans from financial institutions made to acquire inventory for resale?
The category is Financing.
What is the cash flow category for principal payments on short-term and long-term loans from suppliers made to acquire inventory for resale?
The category is Operating.
What is the cash flow category for loans made to other entities?
The category is Investing.
What is the cash flow category for dividends paid?
The category is Financing.
What is the cash flow category for purchases of securities available for sale?
The category is Investing.
What is the cash flow category for purchases of trading securities?
The category is Operating.
What are some examples of cash outflows classified as Financing Activities?
1 Repurchase of own stock; 2 Paying back lenders (principal only); 3 Payment of dividends.
What are some examples of cash inflows classified as Financing Activities?
1 Sale of own stock; 2 Proceeds from borrowing.
What are some examples of cash outflows classified as Investing Activities?
1 Purchase of long-term assets; 2 Lending to others; 3 Investment in debt and equity securities held to maturity and available for sale); 4 Purchase of productive assets (not inventory).
What are some examples of cash inflows classified as Investing Activities?
1 Sale of long-term assets; 2 Collection of loan principal; 3 Disposal of held to maturity (HTM) and available for sale (AFS) debt and equity securities; 4 Sale of productive assets (not inventory).
Where are non-cash investing and financing activities reported?
They are reported on the face of the Statement of Cash Flows or as a separate disclosure.
Where is the cash effect on foreign currency translation reported?
It is reported as a separate part of the reconciliation of the change in cash and cash equivalents during the period.
