Under IAS7 operating cash flows can be shown using either the Direct Method or Indirect Method. Distinguish between the Direct Method and the Indirect Method indicating the advantages and disadvantages of both methods.   What are the main headings under which Cash Flow Statements are presented according to IAS 7.

Q: Describe the usefulness and format of the statement of cash flows.

A: Statement of cash flows:Statement of cash flow is a financial statement that shows the cash and cash…

Q: Under the Indirect Method what must be disclosed on a Statement of Cash Flows?

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: Net operational cash flow is a metric created by cash-basis accounting. Explain the metric in detail

A: Cash basis accounting: According to cash basis of accounting, revenue should be recognized at the…

Q: What is understood by a Cash Flow Statement Is And How It Works?

A: The three financial statements are income statement, balance sheet and cash flow statement.These…

Q: Describe the direct method and indirect method of preparing the cash flow statement, and discuss the…

A: The cash flow statement is a financial statement that shows the inflows and outflows of cash and…

Q: Explain the purpose of SFAC No. 7: “Using Cash Flow Information and Present Value in Accounting…

A: Statement of Financial Accounting Concepts (SFAC) No. 7, also known as "Using Cash Flow Information…

Q: Which of the following method will be adopted to disclose Cash equivalents in the balance sheet? a.…

A: Historical cost method will be adopted to disclose Cash equivalents in the balance sheet....…

Q: What constitute cash and cash equivalents under IAS 7- Statement of Cash Flows.

A: Since you have posted multiple questions we will do the first one for you. Please post the other…

Q: OMPARE DIRECT METHOD  WITH INDIRECT METHOD FOR PREPARING CASH FLOW STATEMENTS.

A: A cash flow statement is a statement prepared to know the movement of cash during the accounting…

Q: Understand the usefulness of the statement of cash flows.

A: Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and…

Q: what are the elements included in a statement of cash flow?

A: A statement of cash flow is a financial statement of an enterprise that shows the inflows and…

Q: Which one of the following shows the sections of a cash flow statement correctly? Select one: a.…

A: Solution:- Introduction:- Cash flows denotes the net amount of cash that an entity receives and…

Q: Describe the procedure to prepare Cash Flow Statement.

A: A cash flow statement consists of 3 parts namely Operating, Investing and Financing Operating…

Q: Describe the types of items used to compute cash flowsfrom operating activities under the two…

A: There are two types of cash flow methods to calculate the cash flow from operating activities. 1)…

Q: Distinguish between the direct method and the indirect method for reporting the results of operating…

A: Statement of cash flows:

Q: What are the four rules for creating cash flow statement?

A: Introduction : In simple words, cash flow statement refers to the financial statement which depicts…

Q: The amount of operating cash flow is identical under both the direct and indirect methods; only the…

A: Cash flow statement means the statement which shows the cash flow in or out of business enterprises…

Q: Explain the usefulness of the statement of cash flows

A: Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and…

Q: Define the differences between the following and their respective usages.   a) Statement of Income…

A: A Statement of Income, also known as an Income Statement or Profit and Loss Statement, is a…

Q: The major difference between the way a statement of cash flows is prepared using theindirect method…

A: Cash flow statement: It is one of the financial statements prepared at the end of a particular…

Q: What are the basic differences in the direct method vs. the indirect method of presenting the…

A: Statement of cash flows is one of the financial statement which shows all cash inflows and cash…

Q: What kind of operations are listed on the cash flow statement? Is it important the order these…

A: A cash flow statement is a basic financial report that depicts a company's cash inflows (cash…

Q: how to prepare a statement of cash flows in the formats required under FSB 1 and IAS 7 respectively

A: Cash is considered as the most liquid asset or quick asset for the business in the balance sheet of…

Q: Identify and describe the various classifications of cash flows presented in astatement of cash…

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: What are the three major sections on a statement of cash flows, and what type of cash inflows and…

A:

Q: According to our authors, what are the three categories of cash flows on the cash flow statement and…

A: Cash flow statement reports company cash receipts and cash payments.

Q: Question 6:- What is the difference between preparing the Operating section of the cash flow…

A:

Q: What is the purpose of the statement of cash flows? What are the three types of cash flow…

A: cash flow statement are the statement which show the position of cash on particular date.  These…