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Cash flow statement is that statement in which, transaction related to cash are recorded. It is mandatory report and included in the financial statement of the company. It is divided into three parts operating activities, investing activity, and financial activity
Operating Activity:
Operating activity is the first part of the cash flow statement. The main focuses of the operating activity on the
Financial Activity:
Financial activity is the part of the cash flow statement. Financial activity involves the long term liability, borrowing and
Investing Activity:
Investing activity is the third part of the cash flow statement which gives the information related to the acquisition and disposal of the long term assets of the company such as land and building, investment and plant.
1.
To identify: Method used in making the cash flow statement.
2.
To identify: Whether the cash paid as dividend is more or less than cash from operating activities.
3.
To identify: Largest amount difference between net income and operating activities.
4.
To identify: Largest cash inflow and outflow in financing and investing activities,
5.
To identify: Largest cash inflow and outflow in the investing and financing activities.
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Chapter 12 Solutions
FINANCIAL ACCT.FUND.(LOOSELEAF)
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