Statement Of Cash Flows

Question 1

Cash flow per share is a PROHIBITED disclosure under GAAP. The FASB did not want it to be confused with Earnings Per Share.

The conversion of debt to equity is an example of a transaction that would appear in the supplemental noncash disclosure schedule.

Answer 1

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Question 2

The primary purpose of the statement of cash flows is to provide information about?

Answer 2

The primary purpose of the statement of cash flows is to provide information about the cash receipts and disbursements of an enterprise during a period.

Question 3

Cash Flows from Operating Activities - This category reports cash inflows and outflows that relate to items that enter the determination of net income.

Cash Flows from Investing Activities - This category reports cash inflows and outflows that relate to “investment in” and disposal of noncash assets.

Cash Flows from Financing Activities- This category reports cash inflows and cash outflows that relate to how the entity is financed.

Answer 3

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