F8 - M2 - Statement of Cash Flows Flashcards
Statement of Cash consist of what sections
Operating, Investing, and Financing
Which Statement of Cash flow section - Cash receipts and disbursements from transactions reported on the income statement and current assets and liabilities
Operating
Which Statement of Cash flow section - Cash receipts and disbursements from non-current assets.
Investing
Which Statement of Cash flow section - Cash receipts and disbursements from debt
(including non-current liabilities) and equity.
Financing
Cash equivalents (treated as cash) are debt securities with an original maturity date of _______ months or less.
three
Under the indirect method, the operating activities section adjusts net income to cash provided, or used, by operating activities. The mnemonic (CLAD)
Current Assets and Liabilities, Losses and Gains, Amortization and deprecation, and Deferred items (CLAD)
When the indirect method is used, a supplemental disclosure of _______________ is required.
cash paid for interest and income taxes
Under the _____ method, the operating activities section shows the major classes of cash receipts and disbursements in their gross amounts to arrive at net cash provided by (used in) operating activities.
direct
When the direct method is used, a supplemental disclosure entitled _____________ is required under U.S. GAAP, but is not required under IFRS.
“the reconciliation of net income to cash provided by operating activities”
Under both the direct and indirect methods, a disclosure of ___________ is required
on cash investing and financing activities is required.
Under U.S. GAAP, interest received and dividends received are classified as ______
CFO.
Under IFRS, interest received and dividends received may be classified as ____or _____
CFO or CFI.
Under IFRS, interest paid and dividends paid may be classified as ______ or ______
CFO or CFF.
Under U.S. GAAP, interest paid is classified as _____ and dividends paid are classified as _____.
CFO; CFF.
What section is bond premium or discount reported in?
Operating, Bond discount amortization increases interest expense, but does not involve any outflow of cash.
