Stmt Of Cash Flows Flashcards
1
Q
Purpose of Statement of Cash Flows
A
Provide relevant information about cash receipts and payments during the period
2
Q
Operating activities
A
Cash effects of transactions that contribute to net income. (From primary activities of the company)
3
Q
Investing activities
A
Cash activities from investments (making loans, acquiring or disposing of debt or equity investments) and purchases/sales of property, plant, and equipment.
4
Q
Finance activities
A
Cash transactions involving exchanges with investors (shareholders) and creditors (receiving/repaying loan principal)
