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Flashcards in Deck 11 Deck (20):
1

The purpose of the statement of cash flows

Provide relevant info about the cash receipts and disbursements of a company

2

How is depreciation treated in the cash flow statement?

Increase in cash in the operating section

3

How is equipment sold at a gain reported in the cash flow statement?

Carrying amount of equipment + gain

4

Difference between interest payments and payments to reduce debt in cash flow statement?

Interest: operating; reduce debt: financing

5

Unamortized bond discount decreased; how does this affect stmt of cash flows?

Add to net income in operating section

6

Dividends received is recorded where in stmt of cash flows?

Operating activities

7

Interest and dividends received (IFRS vs. GAAP)

GAAP: operating; IFRS: investing or operating

8

Interest paid (IFRS vs. GAAP)

GAAP: operating; IFRS: operating or financing

9

Payment and collection of loans is recorded where in stmt of cash flows?

Investing

10

Payment to acquire common stock vs. issuance of common stock (stmt of cash flows)

Payment to acquire: investing; issuance: financing

11

Assets increase, then cash will

Decrease (outflow)

12

Liabilities or equity increase, then cash will

increase (inflow)

13

Cash flow from Operations =

Net income + depr./amort. + losses - gains +/- change in OA +/- change in OL

14

Average AR turnover in days =

Average AR/ (sales/365)

15

What type of fund is excluded from government wide financial statements?

Fiduciary funds

16

Modified accrual recognized revenue

In the period in which they become measurable and available (not exceed 60 days)

17

Government wide financial statements are presented on what basis of accounting?

Accrual

18

Two examples of non-spendable resources?

Inventory and Prepaid expenditures

19

Expenditures of governmental resources should be classified by

Object classes

20

Receiving state appropriations will be treated as

Nonoperating revenues