What are the purposes of the statement of cash flows? What are some of the uses

ID: 2630481 • Letter: W

Question

What are the purposes of the statement of cash flows?

What are some of the uses of the statement of cash

flows?

What information is contained in the statement of

cash flows?

Which activities are generally included in operating

activities?

Which activities are included in investing activities?

Which activities are included in financing activities?

Where should significant investing and financing

activities that do not involve cash flows be

reported?

Explain the difference between the direct and

indirect methods for computing cash flows from

operating activities.

What are noncash expenses? How are they treated

in computing cash flows from operating activities?

Describe the treatment of a gain on the sale of

equipment in preparing a statement of cash flows

under the indirect method.

Depreciation is sometimes referred to as a source

of cash. Is it a source of cash? Explain.

Why is it unlikely that cash flows from operating

activities will be equal to net income for the same

period?

1. The main purposes of preparing a statement of cash flows are as follows:

(1). Explanation of the changes in cash:

SCF explains the reasons of the change in company

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