Statement of Cash Flows Flashcards
What is the purpose of statement of cash flow
To provide info about sources and use of cash and cash equivalent.
What is operating cash flows?
cash receipts and disbursements from
- Transaction reported on income statement
- CA and CL
What is investing cash flows?
Non current assets.
What is financing cash flows?
Debt (including non current liabilities) and equity
Cash equivalent means
within three months of the purchase date.
Indirect method starts from
Net income
In indirect method changes in debit balance accounts will have what effect
the opposite effect on cash flows because cash is a debit balance account
In indirect method changes in credit balance accounts will have what effect
Same effect on cash flows.
Where info about non cash financing and investing should be provided
Separately in a supplemental disclosure.
What activity is selling products/ collecting receivables
Operating cash flow
What activity is purchasing inventory/ paying vendors
Operating cash flow
What activity is purchasing supplies and services / paying vendors
Operating cash flow
What activity is Paying taxes
Operating cash flow
What activity is Purchasing. selling trading securities (general rule)
Operating cash flow
What activity is purchasing long-term assets or long-term investments for cash
Investing
Recording depreciation, amortization, or depletion
No net cash flow
Collecting interest on an investment
Operating cash flow
Collecting dividends on an investment
Operating cash flow
Recording income of equity method affiliates
No net cash flow
Selling long-term assets or investments(non cash equivalents and non-trading securities)- cash proceeds
Investing
Borrowing funds (i.e. bank loans, issuing debt)
Financing Cash flow
Paying interest on debt
Operating cash flow
Paying principal on debt
Financing Cash flow
Issuing common or preferred stock
Financing Cash flow
Paying dividends on common or preferred stock
Financing Cash flow
Repurchasing of stock ( i.e. treasury shares)
Financing Cash flow
Interest received goes in GAAP and IFRS
GAAP - Operating and IFRS - Operating or Investing
Interest paid goes in GAAP and IFRS
GAAP - Operating and IFRS Operating or Financing
Dividends received goes in GAAP and IFRS
GAAP - Operating and IFRS - Operating or Investing
Dividends paid goes in GAAP and IFRS
GAAP - Financing and IFRS - Operating or Financing
Taxes paid goes in GAAP and IFRS
GAAP - Operating and IFRS - Operating, Financing or Investing.
