Cash Flow Statement Questions Flashcards
1
Q
how are non-cash investing and financing transactions treated?
A
they are not in cash flow statements, but are stated in the footnotes or a supplemental schedule
2
Q
what is advantage of using indirect cash flow statement?
A
it brings link with income statement. helps to forecast future operating flows
3
Q
what is advantage of direct method?
A
clearly presents the operating inflows and outflows
4
Q
operating activities relate to what type of assets on the income sheet?
A
current assets and current liabilities
5
Q
investing activities relate to what type of assets on income sheet?
A
noncurrent assets
6
Q
financing activities relate to what type of assets on income sheet?
A
noncurrent liabilities and equity
