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Does the choice of cost flow method affect the statement of cash flows?
Wiki User
∙ 9y ago
no only the method of preparing the cash flow statement can not change the actual cash flow it is just the preference of preparation.
Wiki User
∙ 9y ago
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Which section is affected by the decision to use either the direct method or the indirect method to prepare the statement of cash flows?
The Operating Activities portion of the Statement of Cash Flows is affected by whether the direct or indirect method is used.
Does using the direct method of preparing a cash flow statement provide a higher cash flow result than the indirect method?
Actual cash flow remains the same no matter what method is used it is just the presentation of statement and method of calculated cash flows and it does not affect amount of cash flow
What is the advantage of the direct method of statement of cash flows?
It is easy to calculate
Is depreciation is integral part of cash flow statement?
Depreciation appears only in the operations section of an indirect-method cash flow statement or in a supporting schedule to the body of the statement of cash flows in a direct-method statement. Depreciation is one of the items that reconciles net income to net cash flow from operating activities. However, it does not appear directly on a direct-method cash flow statement because it does not directly affect cash
When using the Indirect Method how is depreciation expense recorded on the Statement of Cash Flows?
Operating Activity
Where do wages payable go on a statement of cash flows?
Wages payable goes on the "cash flows from operating activities" Either as an add or deduct to net income (when using the indirect method)
How you can treat capital work in progress in cash flows statement?
This would be treated as cash outflow in investing activities ....indirect method of cashflow statement ..Regards Aurangzaib Iqbal ACCA
What and why are there two methods for preparing the statement of cash flows?
there are two methods of preparation:1 – Direct method2 – Indirect method
When a cash dividend is declared it would affect the balance sheet but not the statement of cash flows?
dividend will affect the cash flow when actual cash is paid and not at the time of declaration of dividend.
What does a statement of cash flows show?
A statement of cash flows is also called a cash flow statement. The statement of cash flows is a cash basis report that shows the inflows and outflows of cash for the operating, investing and financing resources of a business.
When analyzing the changes on a spreadsheet used to prepare a statement of cash the cash flows from operating activities generally affect?
non- current assets
What does the statement of cash flows list?
No
