i (1) Current Ratio v Financial Ratios Quiz: Ali Alma ure.com/courses/5380/quizz

Question

i (1) Current Ratio v Financial Ratios Quiz: Ali Alma ure.com/courses/5380/quizzes/5949/take Operating activity Financing activity example Must be disclosed as a note to the Statement of Cash Flows Example is net income Last line on the Statement of Cash Flow Statement Begins with net income and reconciles it to the cash flows for the period. add-back to cash flows from operating activity Seldom used method of presenting the SCF Transaction affecting long term liabilities and equity Adjustment to operating cash Investing activity example Transactions affecting long term assets Investing activity Financing activity Depreciation Ending Caslh I Choose ) Noncash Investing and Financing Choose) Activity Indirect method I Choose l Choose I Direct method I Choose) Changes in working capital l Choose 1 Purchase of fixed assets FS F7 6

Explanation / Answer

Operating Activity Example is a net income Investing Activity Transactions affecting longterm assets Financing activity Transactions affecting longterm liabilities and equity Depreciation Adjustment to operating cash Ending cash Last line on the statement of cash flow statement Non cash investing and financing activity Must be discosed as a note to the statement of cash flows. Indirect method Begins with net income and reconclies it to the cash flow for the period Direct method Seldom used method of presenting the SCF Changes in working capital added back to cash flow from operating activity purchase of fixed assets Investing activity example

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