Statement of Cash Flows

Question 1

Goodwill impairment is added back to _______ activities

Answer 1

operating

Question 2

The use of the direct or indirect method only affects the ________ activities section

Answer 2

operating

Question 3

Cash received from customers (direct method) calculation

Answer 3

Revenues - increase in revenues + decrease in receivables + increase in unearned revenue - decrease in unearned revenue

Question 4

Cash paid to suppliers (direct method) calculation

Answer 4

COGS + increase in inventory - decrease in inventory - increase in accounts payable + decrease in accounts payable

Question 5

Cash paid to employees (direct method) calculation

Answer 5

salaries and wages expense - increase in wages payable + decrease in wages payable

Question 6

Other operating cash payments (direct method) calculation

Answer 6

other operating expenses - decease in prepaids + increase in prepaids + decrease in accured liabilities - increase in accrued liabilities

Question 7

Depreciation and amortization of a discount is _______ to operating activities

Answer 7

added back

Question 8

Losses are ______ to operating activities

Answer 8

added back

Question 9

Gains and amortization of premiums are ________ from operating activities

Answer 9

subtracted

Question 10

Increases in assets are an _______ in operative activities

Answer 10

outflow

Question 11

Decreases in assets are an _______ in operating activities

Answer 11

inflow

Question 12

Increases in liabilities are an ______ in operating activities

Answer 12

inflow

Question 13

Decreases in liabilities are an _____ in operating activities

Answer 13

outflow

Question 14

Investing activities deal with changes in _______ assets

Answer 14

noncurrent

Question 15

Financing activities deal with changes in:

Answer 15

interest-bearing debt and equity

Question 16

Noncash investing and financing activities that are material need:

Answer 16

separate disclosure

Question 17

Paying taxes are an ______ activity

Answer 17

operating

Question 18

Purchasing/selling trading securities are an _______ activity

Answer 18

operating

Question 19

Collecting interest, collecting dividends, and paying interest on debt are ________ activities

Answer 19

operating

Question 20

IFRS allows more ______ than GAAP

Answer 20

flexibility

Question 21

Interest received can be either _____ or _____ under IFRS

Answer 21

operating; investing

Question 22

Interest paid can be either ______ or ______ under IFRS

Answer 22

operating; financing

Question 23

Dividends received can be either ______ or ______ under IFRS

Answer 23

operating; investing

Question 24

Dividends paid can be either ______ or _______ under IFRS

Answer 24

operating; financing

Question 25

Under IFRS, taxes paid can be:

Answer 25

operating, investing, or financing

Question 26

IFRS _______ require a reconciliation of NI to operating cash flow when using the direct method

Answer 26

does not