Weekly Questions: Statement of Cash Flows

Q1: What is ‘cash’ in the Statement of Cash Flows?

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Q2: What does the Statement of Cash Flows tell us?

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Q3: In a Statement of Cash Flows, into what three categories do firms need to present their cash flows?

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Q4: Describe each of these three categories of cash flows in a Statement of Cash Flows.

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Q5: Are Statements of Cash Flows usually shown inclusive or exclusive of GST?

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Q6: Firms are required to present their cash flows from operating activities in their Statement of Cash Flows in one of two ways. What are these two ways?

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Q7: Describe the direct method of presenting a firm’s cash flows from operating activities in a firm’s Statement of Cash Flows.

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Q8: Describe the indirect method of presenting a firm’s cash flows from operating activities in a firm’s Statement of Cash Flows.

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Q9: How does the concept of viewing a firm as having operating and financial activities (that we studied in ACCT11059 Accounting, Learning & Online Communication) fit in with the way we present a Statement of Cash Flows into operating, investing and financing activities?

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