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Q: What are the three activities according to which a statement of cash flows is organized?
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Cash flows from interest received are reported in the statement of cash flows as part of?

Operating activities


What is role of cash Flow Statement?

Cash flow statement means the cash inflow and outflow from business due to operating, financing and investing activities.


Which financial statement is primarily concerned with reporting the profit-related activities of a business?

Statement of Cash Flows


What category does Paid-in Capital fall into on the Cash flow statement?

Paid in capital is shown under cash flows from financing activities in cash flow statement.


The statement of cash flows reports a. Cash flows from Operating Activities b. Total Assets c. Total Changes to Stockholder Equity d. Changes to Retained Earnings?

a) Cash flows from Operations. It also provides information on cash flows from investing activities and finance activities.


Cash paid for preferred stock dividends should be shown on the statement of cash flows under?

financial activities financial activities


The appropriate section in the statement of cash flows for reporting the purchase of equipment for cash is?

Investing activities


The appropriate section in the statement of cash flows for reporting the cash payment of wages is?

Operating Activities


What are the components found in cash flow statement?

following items are included in cash flow statement1 - cash flow from operating activities2 - cash flow from investing activities3 - cash flow from financing activities.


What are the major advantages of the indirect method of reporting cash flows from operating activities?

the advantage is that it focuses on the differences between net income and net cash flows from operating activities. Meaning, it makes it more useful to relate the statement of cash flows and the income statement and balance sheet. Also it is less costly to change net income to net cash flow from operating activities.


What are the accounting requirements of not-for-profit organizations?

Three financial statements are required to be issued: a statement of financial position (balance sheet), a statement of activities (income statement), and a statement of cash flows


What is cash flow statement and why it is prepared?

Cash flow statement shows the cash flows from different activities and it is prepared to show how much cash inflow and outflow from operating, investing and financing activities.