Which of the following should not be included in the statement of cash flows?
Non-Cash Transactions: The cash flow statement focuses on actual cash movements, so non-cash transactions, such as depreciation and amortization, should not be included. These items are accounting adjustments that don't involve the physical flow of cash.
The correct answer to this question is (b) Retained earnings
Adjustments with respect to the non-cash items such as depreciation, amortization, gain or loss on the sale of assets are added or deducted back to/from the net income.
Cash flow from contingent activities would not be on the statement of cash flows.
As for the balance sheet, the net cash flow reported on the CFS should equal the net change in the various line items reported on the balance sheet. This excludes cash and cash equivalents and non-cash accounts, such as accumulated depreciation and accumulated amortization.
Examples of non-cash items include deferred income tax, write-downs in the value of acquired companies, employee stock-based compensation, as well as depreciation and amortization.
Cash flow from operating activities does not include long-term capital expenditures or investment revenue and expense.
The cash flow statement has three key sections: cash flow from operations, cash flow from investments and cash flow from financing.
Which of the following will not be reported in the statement of cash flows? The net change in plant assets during the year. The statement of cash flows classifies cash receipts and cash payments by these activities: operating, investing, and financing.
Answer and Explanation:
The Statement of Cash Flows does not need to be completed first, in order for the other financials to be linked, this is not a true statement.
Answer: B) Balance sheet.
Explanation: The balance sheet is not a basic element of financial statements. It is one of the financial statements that reports assets, liabilities and equity. Losses and revenue are elements of an income statement.
Which items are found on an income statement?
The income statement presents revenue, expenses, and net income. The components of the income statement include: revenue; cost of sales; sales, general, and administrative expenses; other operating expenses; non-operating income and expenses; gains and losses; non-recurring items; net income; and EPS.
The balance of service revenue is reported on the income statement and not on the retained earnings statement.
Information on the statement of cash flows helps users answer all of the following questions except: Why did the company invest in long-term assets?
Equipment investments are cash outflows for future returns and this is why they are classified as investing rather than financing activities.
Answer and Explanation:
They include operating, investing, and financing activities. Income activities, on the other hand, are not included in the statement of cash flows but in the income statement, also known as the statement of profit or loss.
There are three cash flow types that companies should track and analyze to determine the liquidity and solvency of the business: cash flow from operating activities, cash flow from investing activities and cash flow from financing activities. All three are included on a company's cash flow statement.
- Cash involving operating activities.
- Cash involving investing activities.
- Cash involving financing activities.
- Supplemental information.
So, are dividends in the cash flow statement? Yes, they are. It's listed in the “cash flow from financing activities” section. This part of the cash flow statement shows all your business's financing activities, including transactions that involve equity, debt, and dividends.
Postdated checks and IOUs.
Answer and Explanation: The answer is Option D. A cash flow statement is prepared for a single financial year. This financial statement only records the current year's cash activities related to the operating, investing, and financing and covers the same time span of the income statement.
Which statements are not include in financial statement?
Answer and Explanation:
The basic financial statements do not include the b) tax return. The basic financial statements that are required for publicly-traded companies are the income statement, the balance sheet, and the statement of cash flows.
Expert-Verified Answer. Among the options provided, the component of the financial system that is NOT included is the leasing market. The correct answer is option C. The financial system comprises various components that facilitate the flow of funds and financial transactions.
Expenses are not a part of a Company`s balance sheet.
Dividends will not be found on the income statement. Dividends represent a distribution of a company's net income. They are not an expense and they do not need to be paid.
The primary purpose of the statement is to provide relevant information about the agency's cash receipts and cash payments during a period.
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