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Chapter 10
The Statement of Cash Flow
Assessment Questions
AS-1 (
1
)
Is the cash flow statement an optional statement? Explain.
AS-2 (
1
)
Identify the three ways a business can generate and use cash.
learning outcomes
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1
Classify operating, investing and financing
activities
2
Prepare a cash flow statement using the
indirect method
3
Calculate book value and cash received for
selling non-current assets
4
Explain the concept of free cash flow and its
importance for potential investors
5
Discuss ethics and control issues related to
cash flow
Appendix
6
Prepare a cash flow statement using the
direct method
