COMM321 Lecture Notes - Lecture 5: Quasi, Cash Cash, Cash Flow Statement
9 Mar 2016
School
Department
Course
Professor
Document Summary
1 cash (not accounting income) is king. a businesses can incur losses and remain in business. ), allocations (capital vs. expense; manufacturing overhead) and provisions (possible future obligations) making it less meaning full. Increase or decrease in cash doesn"t tell the whole story. Therefore, to understand a business, a nancial statement user must know what is happening to cash from different perspectives - operating , investing, and nancing. Accountants must therefore prepare the cash ow statement in a way that provides that information. 1 companies manage cash in tandem with short term money market instruments and bank overdrafts. Pe gaap - s. 1540 of the cica hb. Only signi cant difference between pe gaap and ifrs is the treatment of interest and dividends; under pe gaap, interest paid or received and dividends received that is included in net income must be presented under.
