{
  "deck_name": "Cash Flow Statement",
  "cards": [
    { "question": "What does a statement of cash flows report?", "answer": "Cash and cash-equivalent inflows and outflows over a reporting period, grouped by activity." },
    { "question": "What are the three main sections of a statement of cash flows?", "answer": "Operating activities, investing activities, and financing activities." },
    { "question": "What kinds of cash flows are generally classified as operating activities?", "answer": "Cash effects of the entity's principal revenue-producing activities and other activities not classified as investing or financing." },
    { "question": "What kinds of cash flows are generally classified as investing activities?", "answer": "Cash flows from acquiring and disposing of long-term assets and certain investments." },
    { "question": "What kinds of cash flows are generally classified as financing activities?", "answer": "Cash flows that change contributed equity or borrowings, such as issuing shares or repaying debt." },
    { "question": "What is the direct method for reporting operating cash flows?", "answer": "It reports major classes of gross operating cash receipts and cash payments." },
    { "question": "What is the indirect method for reporting operating cash flows?", "answer": "It reconciles accrual net income to operating cash flow by adjusting for non-cash items and working-capital changes." },
    { "question": "Why is depreciation added back to net income under the indirect method?", "answer": "Depreciation reduced net income but did not use cash in the current period." },
    { "question": "Under the indirect method, how does an increase in accounts receivable generally affect operating cash flow?", "answer": "It is subtracted from net income because revenue recognized exceeds cash collected for that increase." },
    { "question": "Under the indirect method, how does a decrease in accounts receivable generally affect operating cash flow?", "answer": "It is added to net income because cash collected exceeds revenue recognized for that decrease." },
    { "question": "Under the indirect method, how does an increase in accounts payable generally affect operating cash flow?", "answer": "It is added because some expenses recognized have not yet been paid in cash." },
    { "question": "Under the indirect method, how does a decrease in accounts payable generally affect operating cash flow?", "answer": "It is subtracted because cash paid exceeds the expenses recognized for that decrease." },
    { "question": "Where is cash paid to purchase equipment generally reported?", "answer": "As an investing cash outflow." },
    { "question": "Where is cash received from selling equipment generally reported?", "answer": "As an investing cash inflow; any gain or loss is treated separately in the indirect operating reconciliation." },
    { "question": "Where is cash received from issuing common shares generally reported?", "answer": "As a financing cash inflow." },
    { "question": "Where are cash proceeds from borrowing generally reported?", "answer": "As a financing cash inflow." },
    { "question": "Why is net income not the same as net cash from operating activities?", "answer": "Net income uses accrual accounting and includes non-cash items and revenues or expenses recognized in different periods from cash flows." },
    { "question": "How do you reconcile beginning cash to ending cash on the statement?", "answer": "Beginning cash plus the net change in cash during the period equals ending cash, subject to the reporting framework's presentation rules." },
    { "question": "How are significant non-cash investing or financing transactions generally presented?", "answer": "They are excluded from cash-flow totals and disclosed separately, because no cash changed hands." },
    { "question": "Why should cash-flow classifications be checked against the applicable accounting framework?", "answer": "Some classification choices, such as interest or dividends under IFRS, can differ by framework or policy." }
  ]
}