Cash account is provided by the statement of cash flows

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Reference no: EM13913047

1) What information about the cash account is provided by the Statement of Cash Flows that cannot be obtained from the Balance Sheet or from the Income Statement?

2) Explain why a Gain on Sale of Fixed Assets is subtracted from the Statement of Cash Flows Reconciliation under the direct method and why a Loss on Sale of Fixed Assets is added?

3) Explain the difference between Comprehensive Income, Other Comprehensive Income, and Accumulated Other Comprehensive Income. What does a debit balance in Accumulated Other Comprehensive Income mean, and how does it affect the financial statements? How does this compare to a credit balance in this account?

4) What is the difference between a trading security and an available-for-sale security? Why are unrealized holding gains/losses on trading securities recorded in the Income Statement; whereas, unrealized holding gains/losses on available-for-sale securities are recorded as Other Comprehensive Income?

5) Explain any four key differences between IFRS and GAAP as they pertain to the Statement of Cash Flows:

6) At each reporting date, a company should evaluate each of its investments (held-to-maturity, trading securities, and available-for-sale securities) to determine if an impairment exists. Describe in detail the three steps involved in determining whether or not an impairment exists, and if it does exist, how it would be recorded.

Reference no: EM13913047

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