Explain the Statement of Cash Flows. What does each section signify and how is each calculated?
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Explain the Statement of Cash Flows. What does each section signify and how is each calculated?
What is the purpose of a statement of cash flows? Please explain in your own words how the statement of cash flow can be helpful to a business. What are the (3) major sections on a statement of cash flows, and what type of cash inflows and outflows should be included in each of these three sections? Assume that a company repays a $300,000 loan from its bank, and then later in the same year they borrow another $500,000. In...
What are the purposes of the statement of cash flows and how does it help users ?
1. Why was the statement of cash flows created by the Financial Accounting Standards Board (FASB)? 2. Describe the three classifications of cash flows, and provide examples of activities that would appear in each classification. 3. Which section of the statement of cash flows is widely regarded as the most important? Why? 4. Briefly describe the four steps required to prepare the statement of cash flows using the indirect method. 5. Refer to the Why is the indirect method used...
Accounting statements of cash flows: Looking at the accounting statement of cash flows, what does the bottom line number mean? How useful is this number for analyzing a company?
What are the two methods for preparing the Statement of Cash Flows? Which section of the Statement of Cash Flows is different when preparing the financial statement using these two methods?
Question 19 How does depreciation appear on the statement of cash flows under the direct method? Added in the operating activities section Subtracted in the operating activities section In the investing activities section since it relates to plant assets It will not be reported since it is not a cash flow. D Question 20
For
each transaction identify the appropriate section in the statement
of cash flows reports transaction to choosing cash flows from
operating activities (o) cash flow from investing activities (I)
cash flowfrom financing activities (f) or it is not on the
statement of cash flows (x)
*** Section on the Positive (+) or negative (-) cash flow statement of cash flows Transaction The business received cash from the owner in exchange for a. capital. b. Paid cash on accounts payable for...
What does the statement of cash flows measure? a. How the company's assets are financed. b. The market value of the company's assets and equity. c. How the company's retained earnings changed over a period of time. d. How the company's cash account changed over a period of time.
Financial statements all have a goal. The statement of cash flows does as well. Describe how the statement of cash flows helps investors and creditors perform each of the following functions a Predict future cash flows. b. Evaluate management decisions c. Predict the ablity to make debt payments to lenders and pay dividends to stockholders. a. The statement of cash flows helps predict future cash flows by reporting cash which are good predictors of future cash flows.
The
appropriate section in the statement of cash flows for reporting
the net income is:
The appropriate section in the statement of cash flows for reporting the net income is: Operating activities. Financing activities, Investing activities. Schedule of noncash investing or financing activity. This is not reported on the statement of cash flows.