BUSS1030 Lecture Notes - Lecture 8: Cash Flow Statement, Cash Flow, Accounts Payable

• School: University of Sydney
• Department: Business Studies
• Course: BUSS1030
• Professor: Abdul Razeed

Document Summary

General notes: depreciation can"t be on a cash flow statement. Non cash transactions are ignored: accounts payable can be changed to cash, account names are not used there are line items instead, cant prepare cash flow until you"ve prepared balance sheet and income statement . Uses figures from these to calculate line items: balance sheet shows as at, cash statement shows change in cash during the period inflows and outflows. Importance of cash and cash flow: explain why cash and cash flows are important to the reporting entity, cash is important for a business to settle claims, meet expenses and buy new assets and receive returns. Statement of changes in equity (don"t have to prepare this report) Based on accrual transactions related to income earned less expenses incurred. Based on cash and incorporates all account types. See things at the time you collect or pay the cash.