Statement of Cash Flows Flashcards

1
Q

How does allowance for doubtful accounts effect cash flow under the direct method?

A

Disregard.

the Allowance for Uncollectible Accounts is not netted against Accounts Receivable in determining cash collected from customers.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Where should interest paid be reported on the statement of cash flows?

A

Supplemental section

How well did you know this?
1
Not at all
2
3
4
5
Perfectly