Questions from Financial Accounting

Q: What are the primary cash inflows and cash outflows under the direct

What are the primary cash inflows and cash outflows under the direct method for determining net cash flows from operating activities?

Q: Changes in current assets and current liabilities are used in determining net

Changes in current assets and current liabilities are used in determining net cash flows from operating activities. Changes in which balance sheet accounts are used in determining net cash flows from...

Q: Why do we exclude depreciation expense and the gain or loss on

Why do we exclude depreciation expense and the gain or loss on sale of an asset from the operating activities section of the statement of cash flows under the direct method?

Q: Explain what we mean by noncash activities and provide an example.

Explain what we mean by noncash activities and provide an example.

Q: Why is it necessary to use an income statement, balance sheet

Why is it necessary to use an income statement, balance sheet, and additional information to prepare a statement of cash flows?

Q: Refer to the information in BE6–10, but now assume

Refer to the information in BE6–10, but now assume that Shankar uses a periodic system to record inventory transactions. Record transactions for the purchase and sale of inventory.

Q: Describe the basic format used in preparing a statement of cash flows

Describe the basic format used in preparing a statement of cash flows, including the heading, the three major categories, and what is included in the last three lines of the statement.

Q: Briefly describe the four steps outlined in the text for preparing a

Briefly describe the four steps outlined in the text for preparing a statement of cash flows.

Q: Distinguish between the indirect method and the direct method for reporting net

Distinguish between the indirect method and the direct method for reporting net cash flows from operating activities. Which method is more common in practice? Which method provides a more logical pres...

Q: Describe the most common adjustments we use to convert net income to

Describe the most common adjustments we use to convert net income to net cash flows from operations under the indirect method.