BSB110 Lecture Notes - Lecture 9: Cash Flow Statement, Common Stock, Income Statement
Document Summary
The statement of cash flows: purpose and format. The statement of cash flows provides information about cash receipts, cash payments, net change in cash resulting from operating, investing and financing activities. To reconcile the beginning and ending cash balances. The statement of cash flows provides answers as to: Provides vital information about cash in and cash out. Vital information to use with the income statement and balance sheet. Must be able to manage cash to survive, otherwise business will fail. Entity"s principal cash revenue-generating activities, and activities not regarded as investing or financing activities. Acquisition and disposal of long-term assets (non-current assets) affecting cash. Affect the size and composition of contributed equity and borrowing (debt and equity) impacting cash. Significant financing and investing activities that do not affect cash are not reported in the body of the statement of cash flows, but are reported in the notes. Operating activities are reported using two methods: direct and indirect.
