November 2003
Intermediate to advanced
186 pages
2h 50m
English
Content preview from Accounting Demystified
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Chapter 20. Statement of Cash Flows
The fourth statement in a set of financial statements is the Statement of Cash Flows. Preparing the Statement of Cash Flows is not as easy as preparing the other statements. We don't use the trial balance to prepare the Statement of Cash Flows; instead, we have to compute the elements of the statement individually. Preparing this statement is an advanced concept, although I will try to make it simple. The purpose of the statement is to provide information about where cash was generated and what cash was spent on. There are three main sections to the statement:
Cash flows from operations
Cash flows from investing activities
Cash flows from financing activities
Cash flows from operations involve the inflow and ...
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