The Cash Flow Statement: The Cash Flow Statement provides the details of the movement of the funds of the business classifying the cash flow from operating activities, investing activities and financing activities. Cash flow from operating activities includes the movement of funds during the operation of the business. Most current accounts like accounts payable, short term notes payable, accounts receivable , are included in the cash flow from operations. Cash flow from investing activities includes the flow of funds invested by the company mostly in the form of assets. Cash flow from financing activities includes the transactions which finance the business e.g. capital, loans or other borrowings. The nature of the activity of cash flow of the given transactions and if there is inflow or outflow of funds.
The Cash Flow Statement: The Cash Flow Statement provides the details of the movement of the funds of the business classifying the cash flow from operating activities, investing activities and financing activities. Cash flow from operating activities includes the movement of funds during the operation of the business. Most current accounts like accounts payable, short term notes payable, accounts receivable , are included in the cash flow from operations. Cash flow from investing activities includes the flow of funds invested by the company mostly in the form of assets. Cash flow from financing activities includes the transactions which finance the business e.g. capital, loans or other borrowings. The nature of the activity of cash flow of the given transactions and if there is inflow or outflow of funds.
Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.
Chapter 1, Problem E1.37E
To determine
The Cash Flow Statement:
The Cash Flow Statement provides the details of the movement of the funds of the business classifying the cash flow from operating activities, investing activities and financing activities. Cash flow from operating activities includes the movement of funds during the operation of the business. Most current accounts like accounts payable, short term notes payable, accounts receivable, are included in the cash flow from operations. Cash flow from investing activities includes the flow of funds invested by the company mostly in the form of assets. Cash flow from financing activities includes the transactions which finance the business e.g. capital, loans or other borrowings.
The nature of the activity of cash flow of the given transactions and if there is inflow or outflow of funds.