The Six-Step Process for Preparing a Statement of Cash Flows

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How are mortgage or rent payments classified on the statement of cash flow?

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1. Issuing bonds are noted in which section of the statement of cash flow?

2. How will a stock issuance be categorized on a statement of cash flow?

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About This Quiz & Worksheet

How are items on a statement of cash flows categorized, and in what sections does certain information appear? These are a few of the facts you'll need know when you use this quiz and worksheet assessment tool.

Quiz & Worksheet Goals

You will do best on this quiz if you demonstrate the ability to:

  • Explain how mortgage or rent payments are classified on statements of cash flows
  • Note in which section of a statement of cash flows issuing bonds are found
  • State how a stock issuance would be categorized on this type of statement
  • Detail how a transaction in a given scenario would be classified on a statement of cash flows
  • Identify the step in which a new cash balance would be calculated

Skills Practiced

  • Reading comprehension - ensure that you draw the most important information from the lesson, such as the steps of preparing a statement of cash flows
  • Information recall - access the knowledge you've gained regarding stock issuance categorization on statements of cash flows
  • Knowledge application use your knowledge to answer questions about the classification of mortgage/rent payments and land purchases on a statement of cash flows

Additional Learning

If you need further review of this topic, you will find many details in the lesson titled The Six-Step Process for Preparing a Statement of Cash Flows. You will have the opportunity to learn more about:

  • What a statement of cash flows provides
  • Why it is important to analyze cash transactions
  • What operating activities are
  • Which step involves financing activities
  • What kinds of companies might have net negative cash
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