tailieunhanh - Lecture Principles of accounting (2005): Chapter 17 - Needles, Powers, Crosson

Chapter 17 - The statement of cash flows. Chapter 17 presents the statement of cash flows and explains the changes in cash flows from operating, investing, and financing activities of a business. Emphasis is placed on analyzing a company's cash-generating ability and its free cash flow. The indirect approach is used to compute net cash flows from operating activities, but the direct approach is presented as a supplemental objective. | Statement of Cash Flows Multimedia Slides by: Gail A. Mestas, MAcc, New Mexico State University Chapter 17 Learning Objectives State the principal purposes and uses of the statement of cash flows, and identify its components. Analyze the statement of cash flows. Use the indirect method to determine cash flows from operating activities. Learning Objectives (cont’d) Determine cash flows from investing activities. Determine cash flows from financing activities. Overview of the Statement of Cash Flows Objective 1 State the principal purposes and uses of the statement of cash flows, and identify its components The Statement of Cash Flows shows how a company’s operating, investing, and financing activities affected cash during an accounting period Explains the net increase (or decrease) in cash during the accounting period Cash and Cash Equivalents Cash includes cash and cash equivalents Cash Money on hand Deposits in company checking accounts Cash equivalents Short-term, highly liquid . | Statement of Cash Flows Multimedia Slides by: Gail A. Mestas, MAcc, New Mexico State University Chapter 17 Learning Objectives State the principal purposes and uses of the statement of cash flows, and identify its components. Analyze the statement of cash flows. Use the indirect method to determine cash flows from operating activities. Learning Objectives (cont’d) Determine cash flows from investing activities. Determine cash flows from financing activities. Overview of the Statement of Cash Flows Objective 1 State the principal purposes and uses of the statement of cash flows, and identify its components The Statement of Cash Flows shows how a company’s operating, investing, and financing activities affected cash during an accounting period Explains the net increase (or decrease) in cash during the accounting period Cash and Cash Equivalents Cash includes cash and cash equivalents Cash Money on hand Deposits in company checking accounts Cash equivalents Short-term, highly liquid investments including Money market accounts Commercial paper . Treasury bills Combined with the Cash account on the statement of cash flows Purpose of the Statement of Cash Flows is to provide information about a company’s cash receipts and cash payments during an accounting period Other financial statements may also provide some of this information Internal Uses of the Statement of Cash Flows Management uses the statement of cash flows to Assess liquidity Determine if short-term financing is necessary Determine dividend policy Decide whether to raise or lower dividends Evaluate the effects of investment and financing decisions Plan for investing and financing needs External Uses of the Statement of Cash Flows Investors and creditors use the statement of cash flows to assess a company’s ability to Manage cash flows Generate positive future cash flows Pay its liabilities Pay dividends and interest Anticipate its need for additional financing Classification of Cash Flows The statement

• Kế toán - Kiểm toán
• Principles of accounting
• Lecture Principles of accounting
• Nguyên lý kế toán
• Accounting information
• Cash flows
• Statement of cash flows
• Accounting principles
• Fundamental accounting principles
• Lecture Fundamental accounting principles
• Accounting information systems
• Fundamental system principles
• Technology based accounting systems
• Financial accounting
• Managerial accounting
• Managerial cost
• Reporting manufacturing activities
• Merchandising operations
• Accounting cycle
• Completing the accounting cycle
• Classified balance sheet
• Accounting for partnerships
• Partnership form of organization
• Basic partnership accounting