MAA261 Lecture Notes - Lecture 9: Income Statement, Operating Expense, Financial Statement
Document Summary
Explain the reasons for preparing a statement of cash flows. Examine relationship between profitability and net cash flow. Evaluate changes in net assets of the entity. Describe the general format of the statement of cash flows. Separate disclosure of cash inflows and outflows, classified as arising from operating, investing or financing activities. Reconciled movement in cash for the period. Cash from operation reconciled to operating profit. Define the concept of cash in accordance with ias 7/aasb 107 statement of cash flows. Classify cash inflows and cash outflows into operating, investing and financing activities. Cash inflows or outflows relating to the principal revenue-producing activities of the entity and other activities that are not investing or financing activities. Cash inflows: from sale of goods or services, from cash advances and loans made by finan(cid:272)ial institutions relating to the entity"s main revenue-producing activities.
