Flashcards in Deck 11 Deck (20):
The purpose of the statement of cash flows
Provide relevant info about the cash receipts and disbursements of a company
How is depreciation treated in the cash flow statement?
Increase in cash in the operating section
How is equipment sold at a gain reported in the cash flow statement?
Carrying amount of equipment + gain
Difference between interest payments and payments to reduce debt in cash flow statement?
Interest: operating; reduce debt: financing
Unamortized bond discount decreased; how does this affect stmt of cash flows?
Add to net income in operating section
Dividends received is recorded where in stmt of cash flows?
Interest and dividends received (IFRS vs. GAAP)
GAAP: operating; IFRS: investing or operating
Interest paid (IFRS vs. GAAP)
GAAP: operating; IFRS: operating or financing
Payment and collection of loans is recorded where in stmt of cash flows?
Payment to acquire common stock vs. issuance of common stock (stmt of cash flows)
Payment to acquire: investing; issuance: financing
Assets increase, then cash will
Liabilities or equity increase, then cash will
Cash flow from Operations =
Net income + depr./amort. + losses - gains +/- change in OA +/- change in OL
Average AR turnover in days =
Average AR/ (sales/365)
What type of fund is excluded from government wide financial statements?
Modified accrual recognized revenue
In the period in which they become measurable and available (not exceed 60 days)
Government wide financial statements are presented on what basis of accounting?
Two examples of non-spendable resources?
Inventory and Prepaid expenditures
Expenditures of governmental resources should be classified by