Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

F1 SUMMARY > CH15. Statement of Cash Flows: Indirect Method > Flashcards

CH15. Statement of Cash Flows: Indirect Method Flashcards

1
Q

What are the 3 main titles?

A

Cash flows from

  1. operating activities
  2. investing activties
  3. financing activities
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

We do we start with?

A

Profit before tax from the P&L - need to adjust for non-cash items

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Depreciation

A

Operating activities
- initial adjustment
expense so ADD back

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Loss on disposal of PPE

A

Operating activities
- initial adjustment
expense so ADD back

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Investment Income

A

Operating activities
- initial adjustments
income so SUBTRACT

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Interest expense

A

Operating activities
- initial adjustments
expense so ADD back

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Trade and other recievables

A

Operating activities

- working captial adj

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Inventories

A

Operating activities

- working captial adj

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Trade Payables

A

Operating activities

- working captial adj

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Interest paid

A

Operating activities
- final adjusment
SUBTRACT

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Income taxes paid

A

Operating activities
- final adjusment
SUBTRACT

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Purchase of PPE

A

Investing activities
- not included in P&L profit before tax figure
need to SUBTRACT as cash is going out

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Proceeds from the sale of equipment

A

Investment activities
- not included in P&L profit before tax figure
need to ADD back as cash in coming in

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Interest recieved

A

Investment activities
- not included in P&L profit before tax figure
need to ADD back as cash in coming in

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Dividends recieved

A

Investment activities
- not included in P&L profit before tax figure
need to ADD back as cash in coming in

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Proceeds from issue of share capital

A

Financing activities
- not included in P&L profit before tax figure
need to ADD back as cash in coming in

17
Q

Proceeds from long term borrowing

A

Financing activities
- not included in P&L profit before tax figure
need to ADD back as cash in coming in

18
Q

Payment of finance lease liabilities

A

Financing activities
- not included in P&L profit before tax figure
need to SUBTRACT as cash is going out

19
Q

Dividends paid

A

Financing activities
- not included in P&L profit before tax figure
need to SUBTRACT as cash is going out

can be showed in operating cash flow also, but usually here.

F1 SUMMARY (4 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions