Cash Flow Statement

Question 1

Operating Activities Section includes

Answer 1

1) Gain on sale of plant assets

Question 2

Cash management

Answer 2

An entity’s cash purchases and sales of investments considered as cash equivalents generally are part of the enterprise’s cash management activities, and the details of those transactions need not be reported in a statement of cash flows.

Question 3

Investment Activities Section includes

Answer 3

Sales and purchases on non-current assets (gain on sale would be in operating section)

Question 4

Direct Method

Answer 4

• DOES NOT INCLUDE: reconciliation of ending retained earnings to net cash flow from operations.