Concept – Investing Cash Flows Include
Intermediate Accounting
Spiceland, Nelson, and Thomas
10th Edition
Which of the following is not part of cash flows through investments?
Which of the following is not part of cash flows through investments?
When preparing a statement of cash flows, it is necessary to report cash equivalents as separate items from cash.
The cash flows from operating activities in a cash flow statement include the components of net income reported on a cash basis.
Under both the direct and indirect methods of reporting cash flows from operating activities, cash paid for taxes and interest must be disclosed on the face of the statement or in the disclosure notes.
To comply with reporting requirements, when using the direct method to report cash flows from operating activities, a reconciliation of net income to net cash flows from operating activities must be included in the statement of cash flows.
If cash dividends payable decrease, it indicates that the amount of dividends declared was lower than the amount of dividends paid.
The purchase of treasury stock is classified as an investing cash outflow in the statement of cash flows.
In the statement of cash flows, interest payments on debt are categorized as cash outflows from financing activities. Is this statement true or false?
Transactions that involve noncash investing and financing activities must be disclosed either in the statement of cash flows or in the notes to the financial statements.
When preparing the statement of cash flows using a spreadsheet, the summary entries included in the statement duplicate the actual journal entries that were used to record transactions during the year.