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Operating activities
Statement of Cash Flows
Three financial statements are required to be issued: a statement of financial position (balance sheet), a statement of activities (income statement), and a statement of cash flows
Cash flow statement shows the cash flows from different activities and it is prepared to show how much cash inflow and outflow from operating, investing and financing activities.
Operating Activities ;)
Operating activities
Cash flow statement means the cash inflow and outflow from business due to operating, financing and investing activities.
Statement of Cash Flows
Paid in capital is shown under cash flows from financing activities in cash flow statement.
a) Cash flows from Operations. It also provides information on cash flows from investing activities and finance activities.
financial activities financial activities
Investing activities
Operating Activities
following items are included in cash flow statement1 - cash flow from operating activities2 - cash flow from investing activities3 - cash flow from financing activities.
the advantage is that it focuses on the differences between net income and net cash flows from operating activities. Meaning, it makes it more useful to relate the statement of cash flows and the income statement and balance sheet. Also it is less costly to change net income to net cash flow from operating activities.
Three financial statements are required to be issued: a statement of financial position (balance sheet), a statement of activities (income statement), and a statement of cash flows
Cash flow statement shows the cash flows from different activities and it is prepared to show how much cash inflow and outflow from operating, investing and financing activities.