Questions from Financial Accounting

Q: What are noncash investing and financing activities? Give one example.

What are noncash investing and financing activities? Give one example. How are noncash investing and financing activities reported on the statement of cash flows?

Q: (Supplement 12A) How is the sale of equipment reported on

(Supplement 12A) How is the sale of equipment reported on the statement of cash flows using the indirect method?

Q: What information does the statement of cash flows report that is not

What information does the statement of cash flows report that is not reported on the other required financial statements?

Q: What are cash equivalents? How are they reported on the statement

What are cash equivalents? How are they reported on the statement of cash flows?

Q: What are the major categories of business activities reported on the statement

What are the major categories of business activities reported on the statement of cash flows? Define each of these activities.

Q: Define accounting.

Define accounting.

Q: What are the typical cash inflows from operating activities? What are

What are the typical cash inflows from operating activities? What are the typical cash outflows from operating activities?

Q: Describe the types of items used to compute cash flows from operating

Describe the types of items used to compute cash flows from operating activities under the two alternative methods of reporting

Q: Under the indirect method, depreciation expense is added to net income

Under the indirect method, depreciation expense is added to net income to report cash flows from operating activities. Does depreciation cause an inflow of c

Q: Explain why cash outflows during the period for purchases and salaries are

Explain why cash outflows during the period for purchases and salaries are not specifically reported on a statement of cash flows prepared using the indirect method