Flashcards in Statement of Cash Flows Deck (10):
Is the statement of cash flows a required part of the financial statements?
What is the purpose of the statement of cash flows?
To provide information about the sources of cash and cash equivalents
What are the 3 types of cash flows?
Operating, investing, and financing
What are the 2 methods to present statement of cash flows?
Direct and indirect
What method does US GAAP and IFRS encourage?
Calculation for cash received from customers?
Revenues - Increase in receivables + Decrease in receivables + Increase in unearned revenue - Decrease in unearned revenue
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)
What noncash amounts are added back to cash flow for operating activities?
Depreciation, amortization, and losses on dispositions of assets
What noncash amounts are subtracted from cash flow operating activities?
Gains on dispositions of assets