MGAB01H3 Chapter Notes - Chapter 5: Financial Institution, Cash Flow

36 views2 pages
azizs2026mac and 38565 others unlocked
MGAB01H3 Full Course Notes
16
MGAB01H3 Full Course Notes
Verified Note
16 documents

Document Summary

Cash equivalent: short-term, highly liquid investment with an original maturity of less than three months, and subject to an insignificant risk of changes in value. Cash flows from operating: cash inflows and outflows directly related to earnings from normal operations. Direct method: presenting the operating activities section of the statement of cash flows reports components of cash flows from operating activities as gross receipts and gross payments. Indirect method: presenting the operating activities section of the statement of cash flows adjusts net earnings to compute cash flows from operating activities. Cash flows from investing activities: cash inflows and outflows related to the acquisition or sale of productive facilities and investments in the securities of other companies. Cash flows from financing activities: cash inflows and outflows related to external sources of financing for the enterprise. Cash + non-cash assets = liabilities + shareholders" equity. Cash = liabilities + shareholders" equity = non-cash assets.

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