Cash Flow Statement Flashcards
1
Q
Operating Activities Section includes
A
1) Gain on sale of plant assets
2
Q
Cash management
A
An entity’s cash purchases and sales of investments considered as cash equivalents generally are part of the enterprise’s cash management activities, and the details of those transactions need not be reported in a statement of cash flows.
3
Q
Investment Activities Section includes
A
Sales and purchases on non-current assets (gain on sale would be in operating section)
4
Q
Direct Method
A
- DOES NOT INCLUDE: reconciliation of ending retained earnings to net cash flow from operations.