tailieunhanh - Lecture Introduction to financial accounting - Chapter 12: Statement of cash flows

Chapter 12 - Statement of cash flows. In this chapter, we will address the following questions: Where did the company get it’s cash? What they use the cash for? And least importantly, What was the change in the cash balance? | 4th REQUIRED GAAP Statement. Covers a period of time (like an income statement). Focuses on: Inflows of CASH Outflows of CASH 1 12 Statement of Cash Flows Questions the Statement of Cash Flow Answers: Where did the company get it’s cash? What they use the cash for? And least importantly, What was the change in the cash balance? 2 4 Parts of Statement of Cash Flows Income Statement Items Use Direct or Indirect method. Activities Generally Long-Term Asset Items Activities Generally Long-Term Liability & Equity Items Activities 3 Example: If cash is received from borrowing on a note payable, that is a financing activity. If a building is purchased with cash, that is an investing activity. Noncash Activity would be purchasing a building by signing a note payable. GAAP Rule: If a company trades or borrows in an investing or financing activity but doesn’t use only cash, report these activities in either a separate schedule at the bottom of the statement of cash flows or in the footnotes to the financial statements. Noncash Activities 4 Net Income Per income stmt (Accrual basis) xxx + or - Adjustments (Convert to cash basis) xxx Net Cash from Operating Activities xxx Called INDIRECT METHOD Cash receipts from customers xxx less Cash payments: suppliers xxx operating expenses xxx taxes, interest xxx -xxx Net Cash from Operating Activities xxx Called DIRECT METHOD SAME AMOUNT FORMAT - 3 main parts plus schedule 5 2 - Cash from INVESTING activities: Buy or sell PP&E. xxx Buy or sell OTHER company’s stock. xxx Lend Money, Receive repayments. xxx xxx 3 - Cash from FINANCING activities: Borrow money, pay back debt. xxx Buy or sell your OWN stock. xxx Pay dividends. xxx xxx NET INCREASE (DECREASE) IN CASH XXX Cash at Beginning of Year (On balance sheet) + XXX Cash at End of Year (On balance sheet) XXX DON’T FORGET SIGNIFICANT NON-CASH SCHEDULE 6 1 - Accrual to Cash conversion. Assume: Sales (all on credit) $100,000 . | 4th REQUIRED GAAP Statement. Covers a period of time (like an income statement). Focuses on: Inflows of CASH Outflows of CASH 1 12 Statement of Cash Flows Questions the Statement of Cash Flow Answers: Where did the company get it’s cash? What they use the cash for? And least importantly, What was the change in the cash balance? 2 4 Parts of Statement of Cash Flows Income Statement Items Use Direct or Indirect method. Activities Generally Long-Term Asset Items Activities Generally Long-Term Liability & Equity Items Activities 3 Example: If cash is received from borrowing on a note payable, that is a financing activity. If a building is purchased with cash, that is an investing activity. Noncash Activity would be purchasing a building by signing a note payable. GAAP Rule: If a company trades or borrows in an investing or financing activity but doesn’t use only cash, report these activities in either a separate schedule at the bottom of .

• Kế toán - Kiểm toán
• Financial accounting
• Lecture Introduction to financial accounting
• Financial statements
• Cash flows
• Statement of cash flows
• Investing activities
• Issues in financial accounting
• Kế toán tài chính
• Accounting standards
• Financial reporting
• Financial Accounting Standards Board
• Fundamental financial accounting
• Lecture Fundamental financial accounting concepts
• Financial statement
• Accounting cycle
• Accounting for accruals
• Lecture Financial accounting
• Accounting system
• Accounting activities
• Financial accounting practice
• Accounting information system
• Accounting terminology
• Reporting financial results
• Evaluating liquidity
• Business firms
• The financial reporting reform
• Accounting information
• Management accounting
• Accounting equation
• Accounting systems
• Decision making
• External financial reporting
• Accounting for business
• Lecture Accounting for business
• Financial accounting reports
• Statement of financial performance
• Accrual accounting systems
• Statement of financial position
• Mastering financial accounting essentials
• Financial accounting essentials
• Accrual accounting
• Income statement
• Accounting conventions
• Internal control
• Accounting for cash
• Accounting for receivables
• Computing uncollectible accounts expense
• Long term debt
• Accounting for long term debt
• Paper F3
• Revision kit 2016
• Accounting Financial
• Accounting Financial Review
• Financial Review accounting exam
• Study text 2016
• Language of business
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• Credit terminology
• Merchandising businesses
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• Accounting for inventories
• Cash discounts
• The accounting cycle
• International financial reporting standards
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• Accounting worksheet
• Classified balance sheet