Statement of Cash Flows

Question 1

Section of SOCF that includes delivering or producing goods for sale and providing services—generally related to net income and CA/CL

Answer 1

Operating activities

Question 2

Section of SOCF that includes hte acquisition or disposition of long-term productive assets or securities; generally related to hte noncurrenct section of the balance sheet

Answer 2

Investing activities

Question 3

Section of SOCF that includes obtaining redsources from creidtors and repaying amounts borrowed–genraly relate to noncurrent liability and equity sections of BS

Answer 3

Financing activites

Question 4

A method of accounting for the statement of cash flows in which cash flowelements of operating activies are derived from the accrual basis components of net income

Answer 4

Direct method

Question 5

A method fo accounting for hte statement of cash flows that starts with income from continuing operation and adjusts for changes in operating related accounts (i.e. inventory, and a/p) and noncash expenses, revenues losse,s and gains

Answer 5

Indirect method