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Flashcards in Statement of Cash Flows Deck (10):
1

Is the statement of cash flows a required part of the financial statements?

Yes

2

What is the purpose of the statement of cash flows?

To provide information about the sources of cash and cash equivalents

3

What are the 3 types of cash flows?

Operating, investing, and financing

4

What are the 2 methods to present statement of cash flows?

Direct and indirect

5

What method does US GAAP and IFRS encourage?

Direct method

6

Calculation for cash received from customers?

Revenues - Increase in receivables + Decrease in receivables + Increase in unearned revenue - Decrease in unearned revenue

7

What is the mneumonic for the adjustments to the operating activities section of the indirect method?

CLAD(Current assets and liabilities, Losses and gains, Amortization and depreciation, and Deferred items)

8

What noncash amounts are added back to cash flow for operating activities?

Depreciation, amortization, and losses on dispositions of assets

9

What noncash amounts are subtracted from cash flow operating activities?

Gains on dispositions of assets

10

What are other adjustments to operating activities?

Current assets and liabilities