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Flashcards in Cash Flows Deck (6):
1

Q

A

2

What items are included in operating activities on the Statement of Cash Flows?

Cash received from Customers, Interest & Dividends, Trading Securities

Cash paid to Vendors, Suppliers, Interest, Taxes, Trading Securities

3

What items are included in investing activities on a Statement of Cash Flows?

Cash received: Sale of PP&E, Sale of Investments, Loan Principle

Cash paid: Loans, Acquisitions, AFS or HTM Securities, Taxes, Trading Securities

4

What items are included in Financing Activities in a Statement of Cash Flows?

Cash received: Issuance of Stock, Issuance of Debt

Cash paid: Dividends

5

What is the direct method for a Statement of Cash Flows?

Starts with Income from Continuing Operations

Adjusts for changes in accounts like A/R, A/P, Inventory and non-cash revenues, expenses, gains, losses

If used, the Indirect Method must also be shown

6

What is the Indirect Method for a Statement of Cash Flows?

Starts with Net Income

Adjusts for changes in accounts like A/R, A/P, Inventory and non-cash revenues, expenses, gains, losses