Which of the following items should not appear on the Cash Flow Statement

Q: Gains and losses on disposals of assets: Why are gains and losses on disposals of assets treated as…

A: Gains and losses on disposal of assets are notional gains and losses reported in the income…

Q: When using the indirect method to determine operating cash flows, how is depreciation expense…

A: Introduction: Statement of cash flows: All cash in and out flows are shown in cash flow statements.…

Q: Which one of the following affects cash during a period? Recording depreciation expense.…

A: The current asset and the most liquid asset is cash. It is used for monetary transactions. The…

Q: When using the Indirect Method to prepare the Statement of Cash Flows under United States standards,…

A: Cash Flow Statement: Cash Flow Statement is a fundamental financial statement that renders valuable…

Q: What information does the statement of cash flowsreport that is not reported on the other required…

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: What are the primary classifications into which AF’s cash inflows and cash outflowsare separated? Is…

A:

Q: Match the cash expenditures given below with the appropriate accounting treatment. An individual…

A: Given are some transactions for which we have to specify the correct treatment.

Q: Explain why, when utilizing the indirect method, depreciation expenditure, depletion expense, and…

A: Here is the Answer

Q: Which one of the following is NOT an example of cash flows in operating activities according to…

A: Adjustments of non-cash incomes and expenses are not made in the operating activities according to…

Q: Which of the following types of information is not provided by the statement of cash flows?  Select…

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: How to treat interest expense when preparing a Statement of Cash flows? Interest paid is reported…

A: Operating activity under cash flow statement represent the amount of cash inflows and outflows from…

Q: Identify which of the following items is a noncash investing and financing activity that must be…

A: Cash flow from investing and financing activity are reported in the statement of cash flow. The…

Q: Given the items below, which of the following is a subtraction from net income to arrive at…

A: Cash flow from operating activities are those activities that shows day to day operating activities

Q: Which of the following transactions would not be correctly classified on the Statement of Cash…

A: Cash flow statements: It is a statement that provides information about the outflow or inflow of…

Q: In preparing a statement of cash flows, the reconciliation of net income to cash from operating…

A: Cash flow statement includes: Cash flows from operating activities Cash flows from investing…

Q: The effects of the following noncash income or losses shall be removed from the amount of net income…

A: Solution: The effect of the following non cash income for losses shall be removed from the amount of…

Q: When using the indirect method of determining net cash flows from operating activities, how is…

A: Cash flow statement (CFS) is a type of financial statement that gives a summary related to all the…

Q: How would the purchase of non-current (capital) assets appear on the statement of cash flows?…

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: Which item does  not appear on a statement of cash flows prepared by the indirect method? a.…

A: Cash Flow Statement: Cash Flow Statement is a fundamental financial statement that renders valuable…

Q: How does the existence of a noncontrolling interest affect the preparation of a consolidated…

A: Non-controlling interest is that portion of the shares (ownership) that is not owned by the…

Q: Is restricted cash included in the reconciliation of cash balances on a statement of cash flows?…

A: Restricted Cash: It refers to the money that is reserved for a specific purpose. As a result, such…

Q: Can you give some explanation of why Amortization Expense is included as a source of cash in a cash…

A: In indirect  method  of cash flow statement  we add back amortization expense  to net income  in…

Q: Which classification of the cash flow arising from the proceeds from an earthquake disaster…

A: Cash flow statement means the statement which shows the cash flow in or out of business enterprises…

Q: How should significant non-cash transactions be reported in the statement of cash flows? a. They…

A: Explanation: As per the Financial Accounting Standards Board (FASB) Statement No.95, the significant…

Q: What is the principal disadvantage of the direct method of reporting cash flows from operating…

A: Cash flows from operating activities is an important section of cash flow statement which shows all…

Q: Explain the after-tax effect on cash of disposing of assets. Short answer please

A: Cash flows help the management to determine the NPV and evaluate any project based on their NPV.

Q: The portion of an entity’s cash account that is held as a compensating balance must be aggregated…

A: A compensating balance refers to the minimum portion of an entity’s cash account that a borrower…

Q: In the calculation of cash from operating activities, depreciation is added back because it is: A.…

A: Indirect method of statement of cash flow involves a reconciliation from profit before tax,…

Q: Which one of the following statements best describes a cash outflow in relation to the statement of…

A: Statement of cash flow is used to show the cash inflows and cash outflows which are further…

Q: What are some of the grounds for reporting a statement of cash flows using the indirect…

A: The Answer:

Q: Which of the following accounts would never be reported in the income statement as an expense?…

A: generally all the temporary accounts are closed at the end of fiscal year to the income…

Q: hich of the following would be reported in the either the operating, investing or financing sections…

A: The correct answer with proper explanation are as follows

Q: what is the principal disavantage of the direct method of reporting cash flow from operating…

A: Direct method: This method uses only cash basis for preparing the cash flows statement. In this…

Operating Cash Flows

A cash flow statement (CFS) helps the company to know the amount of cash at its disposal, the activities that lead to earning cash, and the activities which require cash expenditure for a particular period. The statement represents the liquidity of the company.