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1.The statement of cash flows relies on a fundamental principle of double-entry bookkeeping; namely, the change in the cash balance must equal the change in

1.The statement of cash flows relies on a fundamental principle of double-entry bookkeeping; namely, the change in the cash balance must equal the change in total liabilities and stockholders' equity

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2. Collecting the principal on a loan to another company would be reported on the investing activities section of the statement of cash flows.

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3.

Buying property, plant, or equipment would be reported as a cash outflow on the investing activities section of the statement of cash flows.

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4.The net cash provided by operating activities on the statement of cash flows does not include any dividends paid to the company's own shareholders.

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5.When a company pays cash to repurchase its own common stock, this is reported as a cash outflow in the financing activities section of the statement of cash flows.

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