Statement of cash flows Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company. Types of activities reported in statement of cash flows: There are three types of activities reported in statement of cash flows. They are: 1. Cash flow from operating activities 2. Cash flow from investing activities 3. Cash flow from financing activities. Non- cash transactions The transaction which does not involve any cash dealings is known as non-cash transactions. In these type transactions there will not be any inflow or outflow of cash. Simply put, the transaction which does not have an impact on the inflow or outflow of cash is called as non-cash transactions. To distinguish: Among operating, investing and financing activities.

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Chapter 12, Problem 12.1BP

To determine

Statement of cash flows

Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company.

Types of activities reported in statement of cash flows:

There are three types of activities reported in statement of cash flows. They are:

1. Cash flow from operating activities

2. Cash flow from investing activities

3. Cash flow from financing activities.

Non- cash transactions

The transaction which does not involve any cash dealings is known as non-cash transactions. In these type transactions there will not be any inflow or outflow of cash. Simply put, the transaction which does not have an impact on the inflow or outflow of cash is called as non-cash transactions.

To distinguish: Among operating, investing and financing activities.

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