An analyst wants to compare the cash flows of two U.S. companies, one that reports cash flow using the direct method and one that reports it using the indirect method. The analyst is most likely to:

A、Straight-line depreciation Accelerated depreciation

B、Direct method cash flows Indirect method cash flows

C、IFRS financial reporting U.S. GAAP financial reporting

A、Finding the present value and compounding are the same.

B、A dollar today and a dollar in one year are not equivalent.

C、If you want to compare or combine cash flows that occur at different points in time, you first need to convert the cash flows into the same units or move them to the same point in time.

D、The equivalent value of two cash flows at two different points in time is sometimes referred to as the time value of money.

A、The IRR is the discount rate that equates the present value of the cash inflows with the present value of outflows.

B、For mutually exclusive projects,if the NPV method and the IRR method give conflicting rankings,the analyst should use the IRRs to select the project.

C、The NPV method assumes that cash flows will be reinvested at the cost of capital,while IRR rankings implicitly assume that cash flows are reinvested at the IRR.

A、Loss on disposal Proceeds from sale Deduct as an adjustment in the calculation of Include in cash flows from investing activities cash flows from operating activities

B、Loss on disposal Proceeds from sale Deduct as an adjustment in the calculation of Include in cash flows from operating activities cash flows from operating activities

C、Loss on disposal Proceeds from sale Add as an adjustment in the calculation of Include in cash flows from investing activities cash flows from operating activities

D、Loss on disposal Proceeds from sale Add as an adjustment in the calculation of Include in cash flows from operating activities cash flows from operating activities

A、cash flows from operating activities

B、cash flows from investing activities

C、cash flows from financing activities

D、the net increase or decrease in assets for the period reported

E、the net increase or decrease in cash for the period reported

A．cash receipts, cash disbursements, and noncash activities

B．direct cash flows and indirect cash flows

C．operating activities, investing activities, and collecting activities

D．operating activities, investing activities, and financing activities

A、A statement of cash flows prepared using the direct method produces the same figure for net cash from operating activities as a statement produced by the indirect method.

B、An increase in a bank overdraft during the accounting period is included within cash flows from financing activities.

C、A profit on the sale of equipment is included within cash flows from investing activities.

D、A surplus on the revaluation of property will appear within cash flows from investing activities.

Task 2 《会计英语实用教程》Page133 IV【要求：在书上填写-拍照-在附件里提交】 IV. Fill in the blanks with the words and phrases given below, and change the form when necessary.（20 points） explain invest finance category effect loan enterprise cash asset operate The statement of cash flows is a summary of activity in a company's _____ account over a period of time and _____ how the cash balance at the beginning of period came to be the cash balance at the end of the period in the process. The statement of cash flows is particularly important in understanding an _____ for purposes of investment and credit decisions. The cash flows are divided into three basic _____: (1) Cash flows from _____ activities (2) Cash flows from _____ activities (3) Cash flows from _____ activities. Cash flows from operating activities are the cash _____ of revenue and expense transactions that are included in the income statement. Cash flows from investing activities are the cash effects of purchasing and selling _____. Cash flows from financing activities are the cash effects of the owners investing in the company and creditors _____ money to the company and the repayment of either or both.

(b) Discuss the key issues which the statement of cash flows highlights regarding the cash flow of the company.

(10 marks)