1. What are the three categories into which inflows and outflows of cash are divided? Be sure to describe what is included in each of these three categories. 2. Why are companies required to report noncash investing and financing activities? How are these activities reported? 3. Why are direct exchanges of long-term debt for items of property, plant, and equipment included in supplementary information for the statement of cash flows even though the exchanges do not affect cash?

1) Explain the meaning of Restricted Cash, and provide an example. 2) Describe what challenges are facing the Conceptual Framework for Financial Reporting today?

2. a.  In what section of the statement of cash flows would a Gain be reported when the indirect method is used?   Noncash activities note Investing Activities Financing Activities Operating Activitiesb.  In what section of the statement of cash flows is the purchase of treasury stock reported?   Investing Activities Operating Activities Noncash activities note Financing Activities

6.On a statement of financial affairs, a company's liabilities should be valued at Select one: a.the present value of future cash flows. b.the amount expected to be paid if the company could honor its debts. c.net realizable value. d.the amount required for settlement. e.replacement cost.