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Questions and Answers
What financial statement reports the cash generated and used during a specific time period?
What financial statement reports the cash generated and used during a specific time period?
- Cash flow statement (correct)
- Statement of retained earnings
- Balance sheet
- Income statement
Which section of the cash flow statement includes cash flows from operating activities?
Which section of the cash flow statement includes cash flows from operating activities?
- Non-cash activities
- Operating activities (correct)
- Investing activities
- Financing activities
How is a decrease in accounts receivable reported in the cash flow statement?
How is a decrease in accounts receivable reported in the cash flow statement?
- As a subtraction from cash flows from financing activities
- As an addition to cash flows from investing activities
- As a separate section under cash flows from operating activities
- As an addition to cash flows from operating activities (correct)
Where are dividends paid reported in the cash flow statement?
Where are dividends paid reported in the cash flow statement?
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Study Notes
Cash Flow Statement
- The cash flow statement reports the cash generated and used during a specific time period.
Operating Activities
- The operating activities section of the cash flow statement includes cash flows from operating activities.
Changes in Accounts Receivable
- A decrease in accounts receivable is reported as an increase in cash flows in the cash flow statement.
Dividends Paid
- Dividends paid are reported in the financing activities section of the cash flow statement.
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