CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

Which of the following is not disclosed on the statement of cash flows prepared under the direct method or on the required supplemental schedule?

A. The amount of income taxes paid during the year
B. The major classes of cash receipts and cash payments
C. Cash flow per share information
D. A reconciliation of net income to net cash flows from operating activities
Correct Answer: C

This information is not required per SFAS No. 95.

User Contributed Comments 5

User Comment
Farina ...and because the direct method deiscloses a lot of data most companies would rather keep private, the indirect method is used almost universally.
jainrajeshv Why D is wrong?
surjoy Because, if your Cash Flows are presented in Direct method, you have to disclose Indirect method as a supplement.
YOUCANDOIT isnt that the other way around surjoy?
please correct me if i'm wrong though
majesty YOUCANDOIT, surjoy is correct. Both methods are permitted under IFRS and U.S. GAAP. Both IASB and FASB encourage Direct Method (and require to provide Indirect Method in supplement). That's why few companies present the Direct Method.
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