ADVANCED ACCOUNTING
ADVANCED ACCOUNTING
12th Edition
ISBN: 9780357671221
Author: FISCHER
Publisher: CENGAGE L
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Chapter 6, Problem 2UTI
To determine

Cash flow:

Cash flow is the receipt or payment by the organization. It may be related to the current period or any other period. It shows the cash position of the organization.

Cash flow from operating activities:

Cash flow from the operating activities shows the receipt and payment regarding the business activity only.

Cash flow from investing activities:

Cash flow from the investing activities shows the receipt and payment regarding the investment activity only.

Cash flow from financing activities:

Cash flow from the financing activities shows the receipt and payment regarding the financing activity only.

Cash flow statement:

Cash flow statement is a statement that reports the cash inflow or outflow in the operating, investing, and financing activities of a company for a particular period. This statement represents the sources and applications or uses of cash. Statement of cash flows tells about the liquidity position of the company. It tells about the amount of cash available to meet the obligations of the company.

:

To identify: the effect of the given acquisition on the cash flow statements prepared after the year of purchase.

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