BU127 Lecture Notes - European Route E59, Net Impact, Spreadsheet
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BU127 Full Course Notes
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Document Summary
Reportin g and interpre tin g cash flows. Answers to questions: the income state m e n t reports revenu e s earne d and expen s e s incurred during a period of time. The state m e n t of financial position reports the assets, liabilities, and equity of a business at a point in time. In contrast, the stat e m e n t of cash flows reports the cash flows arising from operating activities. The stat e m e n t of financial position reports assets, liabilities, and equity at a point in time. Operating activities of a business arise from the production and sale of goods and/or services. Examples of non cash investing and financing include the purchas e of assets by issuing shares or bonds, the repay m e n t of loans using non cash assets, and the conversion of bonds into shares.
