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ACC 421 Week 4 DQs__2 Sets of Answers

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ACC 421 Week 4 DQs__2 Sets of Answers

What is included in each section of the statement of cash flows? What does each section tell you about a company? Which of the three classifications of activities included on a statement of cash flows is the most important? Why? 

 

What are the differences between the direct and indirect method of presenting a statement of cash flows? Which method of presenting a statement of cash flows is the best? Why? 

 

What does a statement of cash flows tell you about a company? Why is the statement of cash flows important? Can a company have profits but no cash? Why? Can a company have an operating loss but positive cash flow?  Why?