Concept Introduction:
Cash: It includes Cash in Hand & Deposits with Bank.
Cash Equivalents: It includes those investments which are short term investment and highly liquid i.e. maturity period is of three months or less.
Operating Activities: Operating Activities are the principal revenue generating activities of enterprise. In other words activities that are not financing and Investing activities.
Investing Activities: Investing activities are the activities related to acquisition and disposal of long term assets and investments. The investments are those investments which are not included in cash & cash equivalent.
Financing Activities: Financing activities are the activities which results in change in size and composition of owner’s capital and borrowing of the enterprise.
To Calculate:
- Increase in
Accounts Receivable - Decrease in Inventory
- Decrease in Accounts Payable
- Cash Paid for issuance of Notes

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Chapter 16 Solutions
WORKING PAPERS F/ FUND ACCOUNTING
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