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ACCOUNTING REVIEW ACCOUNTING JEOPARDY DOCSEDA SCF Basic Concepts SCF Classifications SCF Adjustments SCF IndirectSCFDirect 100 200 300 400 500.

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Presentation on theme: "ACCOUNTING REVIEW ACCOUNTING JEOPARDY DOCSEDA SCF Basic Concepts SCF Classifications SCF Adjustments SCF IndirectSCFDirect 100 200 300 400 500."— Presentation transcript:

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2 ACCOUNTING REVIEW ACCOUNTING JEOPARDY DOCSEDA

3 SCF Basic Concepts SCF Classifications SCF Adjustments SCF IndirectSCFDirect 100 200 300 400 500

4 SCF Basic Concepts 100 Major aim of Statement of Cash Flow (SCF) is to explain change in this account. A : What is Cash? Docseda

5 SCF Basic Concepts 200 A : What are Direct and Indirect Methods? These are the two major methods of preparing a Statement of Cash Flow (SCF). Docseda

6 SCF Basic Concepts 300 A : What are Operating, Investing, and Financing Activities? These are three major types of activities that are analyzed in a Statement of Cash Flow. Docseda

7 SCF Basic Concepts 400 A: What is Net Income? Major aim of Operating Activities Section of SCF is to convert this financial statement item from accrual to cash basis. Docseda

8 SCF Basic Concepts 500 A: What is Schedule of significant Non-cash investing and financing activities or transactions? This section of Statement of Cash Flows has nothing to do with cash transactions. Docseda

9 A: What is Investing Activity? The cash purchase of equipment would be classified as this type of activity in a Statement of Cash Flow (SCF). Docseda SCF Classifications 100

10 SCF Classifications 200 A: What is Financing Activity? The issuance of stock for cash would be classified as this type of activity in a Statement of Cash Flow (SCF). Docseda

11 SCF Classifications 300 A: What is Financing Activity? The payment of dividends would be classified as this type of activity in a Statement of Cash Flow (SCF). Docseda

12 SCF Classifications 400 A: What is Operating Activity ? The sale of land by a Real Estate Company would be classified as this type of activity in a Statement of Cash Flow (SCF). Docseda

13 SCF Classifications 500 A: What is a significant Non-cash Financing activity ? The conversion of debt to common stock would be classified as this type of activity in a Statement of Cash Flow (SCF). Docseda

14 SCF Adjustments 100 A: What is Addition to Net Income? Under SCF Indirect method, Depreciation Expense is shown as this type of adjustment to net income in computation of net cash flow from operating activities. Docseda

15 SCF Adjustments 200 A: What is Deduction to Net Income? Under SCF Indirect method, an increase in Accounts Receivable is shown as this type of adjustment to net income in computation of net cash flow from operating activities. Docseda

16 SCF Adjustments 300 A: What is Addition to Net Income? Under SCF Indirect method, an increase in Accounts Payable is shown as this type of adjustment to net income in computation of net cash flow from operating activities. Docseda

17 SCF Adjustments 400 A: What is Deduction to Net Income? Under SCF Indirect method, a decrease in Income Tax Payable is shown as this type of adjustment to net income in computation of net cash flow from operating activities. Docseda

18 SCF Adjustments 500 A: What is Addition to Net Income? Under SCF Indirect method, Loss on Sale of Equipment is shown as this type of adjustment to net income in computation of net cash flow from operating activities. Docseda

19 SCF Indirect 100 Docseda Based on information below, this amount represents net cash inflow (outflow) from financing activities to be shown on related SCF. A: What is $40 [60(Bonds)-20(Div)] ?

20 SCF Indirect 200 A: What is ($84) [15(Inv)+42(Equip)-126(Equip)-15(Inv)] ? Docseda Based on information below, this amount represents net cash inflow (outflow) from investing activities to be shown on related SCF.

21 SCF Indirect 300 A: What is $15 [12(Dep)+15(Loss)-12(Gain)]? Based on information below, this amount represents net adjustment to net income from Income Statement section only to be shown on related SCF. Docseda

22 SCF Indirect 400 A:What is ($17)[-9(AR)-12(Inv)+2(PP)-3(AP)+3(Liab) +2(ITP)]? Based on info below, this amount represents net adjustment to net income from Current Asset & Current Liability section to be shown on related SCF. Docseda

23 SCF Indirect 500 A: What is $55 [57+12(Dep)-12(Gain)+15(Loss)-9(AR)-12 (Inv)+2(PP)-3(AP)+3(Liab)-2(ITP)]? Based on information below, this amount represents net cash inflow (outflow) from operating activities to be shown on related SCF. Docseda

24 SCF Direct 100 A: What is $441 [450-9(AR)]? Based on information below, this amount represents cash receipts from sales to be shown on related SCF. Docseda

25 SCF Direct 200 A: What is $12 [6(Int)+6(Div)] ? Based on information below, this amount represents cash receipts from interest and dividend income to be shown on related SCF. Docseda

26 SCF Direct 300 A: What is $128 [90-12(Dep)-3(Liab)-2(PP)] ? Based on information below, this amount represents cash payments for operating expenses and other interest expense to be shown on related SCF. Docseda

27 SCF Direct 400 A: What is $28 [30-2(ITP)]? Based on information below, this amount represents cash payments for income taxes to be shown on related SCF. Docseda

28 SCF Direct 500 A: What is $243 [ 228+12(Inv)+3(AP)]? Docseda Based on information below, this amount represents cash payments for inventory purchases to be shown on related SCF.


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