Cash Flow

Question 0

Required disclosures under direct method:

Answer 0

Major classes of gross cash receipts and gross cash payments

Amount of income tax paid

Reconciliation of net income to net cash flow from operations.

Question 1

Buying treasury stock that matures in 3 months

Answer 1

Will not be reported on cash flows because that’s cash it just change form

Question 2

Financing cash flow

Answer 2

Only count dividend paid NOT declared.

Question 3

Don’t have to disclose cash flow per share

Answer 3

MUST disclose conversion of debt security.
Intesrt and tax paid
Dividends paid

Question 4

Add allowance for doubtful accounts to cash provided by

Answer 4

Operating activities bc it’s is contra asset like a liability