1.A client is using the direct method to report cash flows from operating activities on its statement of cash flows.In order to keep its financial statements as short as possible, it would prefer to use the minimum number of line items in that section of its statement.Identify the location in professional standards that indicates the minimum classes of operating cash receipts and payments that should be reported on a statement of cash flows when applying the direct method.

• Which title of Professional Standards addresses this issue & will be helpful in understanding the documentation requirements for matters communicated with governance?
• Enter the exact section and paragraph with helpful information.

2.An entity has a very seasonal business and, as a result, uses its line of credit regularly.It takes out advances frequently and repays them within 30 to 60 days.The entity is trying to determine if it should report each advance as a source of cash and each repayment as a use on its statement of cash flows or if it may report the amounts on a net basis.Identify the location in professional standards that indicates whether cash receipts and cash payments related to debt may be reported on a net basis.

• Which title of Professional Standards addresses this issue & will be helpful in understanding the documentation requirements for matters communicated with governance?
• Enter the exact section and paragraph with helpful information.