#26 Sources and Uses of Cash

Question 1

What is the primary purpose of the statement of cash flows?

Answer 1

To provide information about the cash receipts and cash payments for an entity.

Question 2

If a firm uses the direct method for the operating section of the statement of cash flows, what must they also report?

Answer 2

The reconciliation of net income to cash flows from operations.

Question 3

The statement of cash flows does not include changes in restricted cash.

True or False

Answer 3

False

Question 4

Firms must disclose cash flow per share in the statement of cash flows.

True or False

Answer 4

False

Cash flow per share is prohibited from being disclosed.