- CFA Exams
- CFA Exam: Level I 2021
- Study Session 7. Financial Reporting and Analysis (2)
- Reading 23. Understanding Cash Flow Statements
- Subject 2. Preparing the Cash Flow Statement
CFA Practice Question
Which of the following is found in the statement of cash flows?
II. Auditor's opinion
III. Summary of significant accounting policies
IV. Cash dividends
I. Operating income
II. Auditor's opinion
III. Summary of significant accounting policies
IV. Cash dividends
Correct Answer: IV only
User Contributed Comments 7
| User | Comment |
|---|---|
| MaiHuong | I think operating income also appear in cash flow |
| nagri | No, be careful, it is the net income you have to take in the cashflow as the first step in indirect method -- for CFO |
| coolnan | thanks-nagri |
| AndyBear | I thought the payment of cash dividends was a financing activity. |
| IvanTG | Yes, it belongs to the CFF section of the statement of cash flows. |
| ascruggs92 | They got me. Operating Income isn't on the CF statement, Cash Flow From Operations is |
| forry9er | Don't confuse Operating Income with NET Income; which is line item #1 for CFO. |