Cash Flow Flashcards
1
Q
What are operating activities?
A
Income earning activities of the company
2
Q
Examples of operating activities
A
• Stock purchases and sales •Giving money to creditors •Getting •Payed by debtors •Paying expenses •Paying SARS for income tax •Paying shareholders dividends •
3
Q
What are financial activities?
A
Activities that change debt(loan) or capital
4
Q
E.g financial activities
A
- New issues of shares
- Shares are bought back
- Loan is payed
- Loan is increased
5
Q
What are investing activities?
A
- Investing in land and buildings
* Fixed deposit
6
Q
Purpose of cash flow statement
A
Show cash made and used during operating,investing and financing activities
