Statement of Cash Flows

Question 1

The payment of interest on a note is what type of activity?

Answer 1

Operating

Question 2

Cash received or paid is what type of activity?

Answer 2

Operating

Question 3

Cash flows from investing activities reports what?

Answer 3

Cash inflows and outflows that relate to the investment and disposal of NONCASH assets

Question 4

Collection of a loan principal constitutes which type of activity?

Answer 4

Investing

Question 5

Lending money to other constitutes which type of activity?

Answer 5

Investing

Question 6

Disposal of debt and equity securities constitutes which type of activity?

Answer 6

Investing

Question 7

Cash flows from financing activities reports what?

Answer 7

Cash inflows and outflows that relate to how the entity is financed

Question 8

Sale of company stock and process from borrowing are inflows of what activity?

Answer 8

Financing

Question 9

Acquisition of treasury stock, payment of dividends, and paying back note principals are which type of activity?

Answer 9

Financing

Question 10

To get from CF from Ops to Net cash provided by Ops using the indirect method, what would you do?

Answer 10

Add back: Non cash expenses, losses, decreases in CAs. Deduct: Non cash revs, gains, increase in CAs

Question 11

Additional disclosures to the SCF when using the Indirect Method are…?

Answer 11

Cash paid for interest and cash paid for income taxes

Question 12

Additional disclosures to the SCF when using the Direct Method are…?

Answer 12

The reconciliation from operating activities to NI