PF2205 - Lecture 3

Companies prefer GAAP or IFRS?

• IFRS

• GAAP

Stocks of another public company (A) owned by a company (B) are reported on company (B)'s balance sheet under?

• Current asset

• Non-current asset

• Equity

Working capital is shown on the balance sheet as part of?

• Assets

• Liabilities

• Equity

• It does not show there as a separate element

If net income is negative, cash flow from operations

• is always negative

• could be positive

Which cash flow statement reflects the payment of dividends to shareholders?

• Cash flow from operating activities

• Cash flow from investing activities

• Cash flow from financing activities