Conpany Financial Reports Flashcards
What is the statement of financial position?
Financial statement that details asset, liabilities and equity.
What is the statement of comprehensive income?
Financial statement that details total comprehensive income presenting change in equity over that period, and comprises all income and expense.
What is the statement of changes in equity?
A financial statement that details the changes in share capital, retained earnings and reserves.
9 purposes of statement of cash flows
Evaluate the changes in the net assets.
Evaluate financial structures of entity.
Evaluate ability to adapt to changes and opportunities.
Asses ability to generate cash flows
Asses present value of cash flows
Compare the operating performance with other entities.
Predict future cash flows
Check accuracy of past assessments of future cash flows
Examine relationship between profitability and met cash flows.
What are operating activities ?
Cash flows that relate to the revenue producing activities of the entity that are not investing or financing activities.
What are investing activities?
Cash flows relating to the purchase and sale of property plant and Equipment.
What are financing activities ?
Cash flows that result in changes in the amount of the contributed equity and borrowings of the entity.
Define cash and cash equivalents?
Cash is defined as cash on hand
Cash equivalents are short term, high liquid investments that are readily convertible to known amounts of cash with no significant risk of change in value.
