Hoạt động kinh doanh có liên quan đến giao dịch mà làm cho hoạt động net cũng ảnh hưởng đến các tài sản hiện tại và nợ ngắn hạn trên bảng cân đối kế toán. | The Statement of Cash Flows Chapter 17 The statement of cash flows reports the entity’s cash flows (cash receipts and cash payments) during the period. Purpose of The Statement of Cash Flows: Basic Concepts Identify the Purposes of the Statement of Cash Flows. Objective 1 Purposes of the Statement of Cash Flows Statement of Retained Earnings 12/31/x1 For the Year Ended 12/31/x2 12/31/x2 (a point in time) (a period of time) (a point in time) Statement of Cash Flows Income Statement Balance Sheet Balance Sheet Purposes of the Statement of Cash Flows The statement of cash flows is designed to fulfill the following: predict future cash flows evaluate management decisions determine the ability to pay dividends plus interest and principal show the relationship of net income to changes in the firm’s cash Cash Balance Includes. cash on hand. cash in the bank. cash equivalents. Cash Equivalents Are short-term, highly liquid investments convertible into cash with little delay. money . | The Statement of Cash Flows Chapter 17 The statement of cash flows reports the entity’s cash flows (cash receipts and cash payments) during the period. Purpose of The Statement of Cash Flows: Basic Concepts Identify the Purposes of the Statement of Cash Flows. Objective 1 Purposes of the Statement of Cash Flows Statement of Retained Earnings 12/31/x1 For the Year Ended 12/31/x2 12/31/x2 (a point in time) (a period of time) (a point in time) Statement of Cash Flows Income Statement Balance Sheet Balance Sheet Purposes of the Statement of Cash Flows The statement of cash flows is designed to fulfill the following: predict future cash flows evaluate management decisions determine the ability to pay dividends plus interest and principal show the relationship of net income to changes in the firm’s cash Cash Balance Includes. cash on hand. cash in the bank. cash equivalents. Cash Equivalents Are short-term, highly liquid investments convertible into cash with little delay. money market accounts. . Government Treasury bills. Distinguish Among Operating, Investing, and Financing Cash Flows. Objective 2 Basic Organization of the Statement of Cash Flows A business may be evaluated in terms of three types of business activities: Operating activities Investing activities Financing activities Operating Activities Operating activities are related to the transactions that make up net income. Operating activities also affect current assets and current liabilities on the balance sheet. Investing activities increase and decrease the assets that are available to the business. Investing Activities Investing activities are related to the Long-Term Asset accounts. These are transactions involving obtaining resources from the owners or returning resources to them. Financing Activities It also involves obtaining resources from creditors and repaying the amount borrowed. Format of the Statement of Cash Flows FASB Statement 95 approved two methods for reporting cash flows from .
