AFM391 Chapter Notes - Chapter 22: Cash Flow, Money Market Fund, Finance Lease

66 views6 pages

Document Summary

The purpose of the statement of cash flows is to provide information about cash receipts and payments during a period. Liquidity and solvency of an entity - capacity to generate cash to pay maturing debt, to maintain and increase productive capacity, and to distribute returns to owners. Amounts, timing, and uncertainty of future cash flows - historical cash flows are useful in predicting future cash flows. Reasons for the difference between net income and cash flow from operating activities. The statement of cash flows is required under both aspe and ifrs. Cash is cash on hand and demand deposits. Classification of cash flows: operating activities are the principal revenue-producing activities which are not investing or financing activities. Involve cash effects of transactions that determine net income (includes income taxes): operating cash flows are needed to maintain the organization"s systems, usually related to working capital (current) accounts.

Get access

Grade+
$40 USD/m
Billed monthly
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
10 Verified Answers
Class+
$30 USD/m
Billed monthly
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
7 Verified Answers

Related Documents

Related Questions