Cash Flow Statement

Question 0

cash return on assets ratio

Answer 0

CFO / ave total assets

Question 1

Cash flow to revenue ratio

Answer 1

CFO / Net revenue

Question 2

cash return on equity ratio

Answer 2

CFO \ ave shareholder’s equity

Question 3

cash to income revenue ratio

Answer 3

CFO/ op income

Question 4

cash flow per share ratio

Answer 4

(CFO- pref div) / # common shares outstanding

Question 5

Three types of cash flow

Answer 5

CFO, CFI and CFF

Question 6

GAAP classifcation for int/div rec’d

Answer 6

CFO

Question 7

GAAP classification for interest paid

Answer 7

CFO

Question 8

GAAP classification for acquisition of debt/equity

Answer 8

CFI

Question 9

GAAP classification for principal amt of debt issued

Answer 9

CFF

Question 10

GAAP classification for principal paid on debt

Answer 10

CFF

Question 11

GAAP classification for dividends paid

Answer 11

CFF

Question 12

are noncash investing/financing activities reported on cashflow statement?

Answer 12

no. (eg. is exchange of debt for equity)

Question 13

IFRS classification of int/div rec’d

Answer 13

CFO or CFI

Question 14

IFRS classiciation for div/interest paid

Answer 14

CFO or CFF

Question 15

describe how direct method is used

Answer 15

each item of accrual based income statement is converted into cash receipts or cash payments

Question 16

describe how indirect method is used

Answer 16

adjusts net income but are not cash transactions (i.e. accounts payable, depreciation, etc).

Question 17

IFRS or GAAP requires disclosure whne using direct method?

Answer 17

GAAP requires disclosure with indirect method

Question 19

CFO components in the direct method

Answer 19

cash inflows and cash outflows

Question 20

GAAP classification for taxes

Answer 20

CFO

Question 21

how to adjust indirect cash for to direct cash flow statement

Answer 21

adjust for changes in income statement by eliminating non cash and non operating charges