BU397 Chapter Notes - Chapter 22: Equity Method, Accrual, Operating Cash Flow
Document Summary
The info may help users assess: liquidity and solvency. Entity"s ability to generate future cash flows and its needs for cash resources: the amounts, timing, and uncertainty of future cash flows, reasons why net income and net cash flow from operating activities differ. Cash: cash on hand, demand deposits. Readily convertible to known amounts of cash. Subject to an insignificant risk of change value: made up of non-equity investments that are acquired with short maturities. Provides info about: cash receipts (cash inflows) during the year, uses of cash (cash outflows) during the year. Operating activities: cash flows resulting from the primary revenue producing activities in the business such as. Payments to cra for tax: cash flow provided by operating activities necessary for long term sustainability of the business. To take advantage of new investment opportunities. To pay dividends without seeking external financing. Investing activities: the acquisition and disposal of long term assets and long term investments, includes.
