Which of the following is a required separate disclosure for firms using the direct method in the statement of cash flows?
A) A reconciliation of net income to net cash flows from operating activities
B) A list of all noncash investing and financing transactions
C) The policy for determining which highly liquid, short-term investments are treated as cash equivalents
D) All of the above

Question

Quizplus · Accepted Answer

The direct method for the statement of cash flows requires a reconciliation of net income to net cash flows from operating activities (A), a list of all noncash investing and financing transactions (B), and disclosure of the policy for determining which highly liquid, short-term investments are treated as cash equivalents (C).

Which of the Following Is a Required Separate Disclosure for Firms