ACCT 2220 Chapter 13: Accounting Chapter 13

• School: University of Guelph
• Department: Accounting
• Course: ACCT 2220
• Professor: Ron Baker

Document Summary

Content: cash and cash equivalents are used, cash equivalents are highly liquid trading investments that can be converted to cash in a short amount of time. Step 2: preparing investing activities section: determine net cash provided (used) by investing activities, done by analyzing changes in non-current asset accounts from comparative statement of. Step 3: prepare nancing activities section: determine the net cash provided (used) by nancing activities, done by analyzing changes in non-current liability and equity accounts from the comparative statement of nancial position, and selected info. Step 4: complete the statement of cash flows: determine the net increase (decrease) in cash, make sure cash balance equals cash balance on statement of nancial position. Indirect method: a method of determining net cash provided (used) by operating activities in which pro t is adjusted for items that do not affect cash.