Which of the following options is not a component of a statement of cash flow?
Operating activities for a statement of cash flow include other activities that are not investing or financing activities. Taxes paid/received are classified as operating activities.
Which of the following statements best describe the main purpose of a statement of cash flow?
The main purpose is to provide information about a companies gross receipts/payments for a specified time.
The main purpose is to understand the trends of a companies performance.
An element of reporting cash flow from operating activities is the direct method. Which of the following is not classified by the direct method?
Cash flows should be reported as net.
An element of a cash flow statement is financing activities. Which best describes financing activities?
Activities that cause changes to equity.
Activities that cause changes to assets.
Investing activities within a cash flow statement are activities that relate to long-term assets and other investments, not included in cash equivalents.
Interest and Dividends can be classified as either of the 3 components (operating, financing or investing) as long as they are consistently treated from period to period.
With a statement of cash flow, which of the following needs to be considered?
non-cash investing transactions are not to be disclosed
foreign exchange transactions to be ignored
no disclosure required for acquisition and disposal of subsidiaries
Non-cash items such as depreciation, provisions, deferred taxes are classified as the indirect method of reporting cash flows from operating activities.