statement of cashflows Flashcards

1
Q

two methods

A

direct and indirect(reconciliation)

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2
Q

financing section includes

A
sale of stock/reaquire stock
issuance of debt(bonds or notes) for this comp
to stockholders as div
to redeem lt debt
sale of equity securities
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3
Q

operating activities- items on income statement

A
from customers
dividends from investment
interest rev
int expense
payment of income taxes
to employees-payroll
to suppliers goods, services
or 
from customers
interest or div income
sale of trading investments
to suppliers, employees, gov
for interest or other operational exp
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4
Q

investing activities-reports cash inflows and outflows that relate to investment in and disposal of non cash assets.

A

sale/purchase ppe
sale/purchase of debt or equity securities of other entities
collection of loan principal

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5
Q

direct method how

A

to derive net cash provided by operating activities using the direct method each item in the income statement is adjusted from accrued to cash

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6
Q

Direct method has 4 sections under operating

A

collection from customers (rev, ar,unearned rev)
cash payments to suppliers (cogs, inv,ap)
cash payments for operating expense(op exp, prepaid,op expense payable)
cash payments for other types of expenses

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