Cashflows Flashcards
A component of financial statements summarizing the operating, investing and financing activities of an entity
Statement of Cashflows
The statement of cashflows provides information about ____ and _____ of an entity within a period.
Cash receipts, cash payments
What is the primary purpose of the Statement of cashflows?
To provide relevant information about cash receipts and cash payments of an entity during a period.
The statement of cashflows is designed to provide information about the entity’s _____
cash and cash equivalents
Provides that an investment normally qualifies as a cash equivalent only when it has a short maturity of three months or less from date of acquisition.
PAS 7, paragraph 7
Repayable on demand
Bank overdraft
A characteristics of such banking arrangement is that the bank balance often _____ from being positive to overdrawn.
Fluctuates
Inflows or outflows of cash and cash equivalents
Cashflow
Cash flows derived primarily from the principal revenue producing activities of the entity.
Operating activities
Cashflows derived from the acquisition and disposal of long-term assets and other investments not included in cash equivalents
Investing activities
True or false. Investing activities are always non-current
False
The cashflows derived from the equity capital and borrowings of the entity.
Financing activities
Between the entity and the owner
Equity finnacing
Between the entity and the creditors
Debt financing
