F7 - Statement of Cash Flows

Question 1

Under the indirect method of the statement of cash flows, what two items must be disclosed in the footnotes?

Answer 1

Taxes and (net) interest paid

Question 2

What is included in Operating Cash Flows?

Answer 2

Anything from the income statement, current assets and current liabilities

Question 3

What is included in Investing Cash Flows?

Answer 3

Noncurrent assets

Question 4

What is included in Financing Cash Flows?

Answer 4

Debt (interest-bearing) and equity

Question 5

T/F: Conversion of debt to equity should be disclosed as supplemental information in the statement of cash flows

Answer 5

True

Question 6

How should a change in unamortized bond discount be treated in the statement of cash flows?

Answer 6

Added to net income in the operating section

Question 7

Under which section of the Statement of Cash Flows should dividends received be reported?

Answer 7

Operating

Question 8

T/F: A dividend received is included in net income, so a separate adjustment is not needed to get to cash flows from operating activities

Answer 8

True