BUS 082 Chapter Notes - Chapter 7: Cash Flow Statement, Cash Cash, Cash Flow

• School: College of The Sequoias
• Department: Business (BUS)
• Course: BUS 082
• Professor: Porterfield

Document Summary

Reports the inflows and outflows of cash and cash equivalents. Divides cash into operating, investing and financing activities. Analysis of the business" cash movements over the period. Net total net increase or decrease in cash of the business. Cash is important for settlement of claims. Businesses can fail as a result of their inability to find sufficient cash to settle. Focuses on liquidity as compared to other statements which show movements in. Cash equivalents short-term, highly liquid investments that can readily be. Examples cash on hand, cash at bank, short-term money market deposits, bank converted into cash wealth bills etc. Cash revenue is recognised when cash is received and expenses are recognised when cash is paid. Accrual revenue is recognised when earned and expenses are recognised when incurred. Reflects the economic reality" of financial transactions, most used. Differences between financial reports liabilities and owners" equity.