Statement of Cash Flows Flashcards
What is the cash flow category for interest paid and received?
Operating
What is the cash flow category for collections of principal amounts on loans made to other entities?
Investing
Name the four major sections in the direct method cash flow statement.
Operating cash flows;
Investing cash flows;
Financing cash flows.
Reconciliation of net income and net operating cash flows.
What is the reporting basis of the statement of cash flows?
cash and cash equivalents
When is a Statement of Cash Flows required?
For all business enterprises that report Balance Sheet & Income Statement.
List the six required categories for the Statement of Cash Flows.
- Operating Activities;
- Investing Activities;
- Financing Activities;
- Effects of Foreign Currency Translation;
- Reconciliation of net cash with the reported change in cash and cash equivalents on the Balance Sheet;
- Non-cash Investing and Financing Activities.
Where are non-cash investing and financing activities reported?
They are reported on the face of the Statement of Cash Flows or as a separate disclosure.q
What is the cash flow category for loans made to other entities?
Investing
What is the cash flow category for principal payments on short-term and long-term loans (from financial institutions or dealers) made to acquire plant assets?
Financing
What is the cash flow category for dividends paid?
Financing
What are two examples of cash inflows classified as Financing Activities?
Sale of own stock;
Proceeds from borrowing.
What is the cash flow category for purchases of trading securities?
Operating
What is the cash flow category for principal payments on short-term and long-term loans from suppliers made to acquire inventory for resale?
Operating
What are four examples of cash outflows classified as Investing Activities?
- Purchase of long-term assets;
- Lending to others;
- Investment in debt and equity securities held to maturity and available for sale);
- Purchase of productive assets (not inventory).
What is the cash flow category for principal payments on short-term and long-term loans from financial institutions made to acquire inventory for resale?
Financing
