Concept explainers
Cash flow statement:
Statement of
Cash flows from operating activities: These refer to the cash received or cash paid in day-to-day operating activities of a company.
Cash flow from investing activities: This section of cash flows statement provides information concerning about the purchase and sale of capital assets by the company.
Cash flow from financing activities: This section of cash flows statement provides information about the
To describe: The basic format of cash flow statement.
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Financial Accounting
- What categories of activities are reported on the statement of cash flows? Does it matter in what order these sections are presented?arrow_forwardExplain the purpose of the statement of cash flows and why this statement is needed.arrow_forwardProvide the missing piece of information for the following statement of cash flows puzzle.arrow_forward
- Which is the proper order of the sections of the statement of cash flows? A. financing, investing, operating B. operating, investing, financing C. investing, operating, financing D. operating, financing, investingarrow_forwardWhen preparing the operating section of the statement of cash flows, using the indirect method, how must gains and losses be handled? Why?arrow_forward
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