Business Administration 1220E Chapter Notes - Chapter 1: Cash Flow, Cash Flow Statement, Current Liability

• School: Western University
• Department: Business Administration
• Course: Business Administration 1220E
• Professor: Barbara Bruce

Document Summary

Records how cash has been generated and used by the company over a specific period of time (usually one year). It"s the cash in and out of a company in the finance, investment, and operating sectors. *this table used to look at differences on b. s. Measures the cash flow associated with normal business activities. Any cash flows from current assets and current liabilities. Although it is similar to an income statement, the net income is not equal to cash flow for these reasons: I. s contains expenses that are non-cash items (depreciation) I. s contains statements not related to business activities (fixed assets) I. s does not reflect the amount of cash received or paid during the year. Done by making adjustments to net income, either by adding or subtracting statements on the. This is because not all transaction on the i. s involve actual cash items. *increases in asset accounts = negative impact on cash (use)