Financial statements - Cash Flow statement

Question 1

how is a cash flow statement organized?

Answer 1

beginning cash
+(-) operating activities
+(-) investing activities
+(-) financing activities
ending cash

Question 2

explanatory factors of cash flow statements organized into 3 categories:

Answer 2

1. operating activities
2. investing activities
3. financing activities

Question 3

a report that provides an analysis of cash receipts and cash disbursements

Answer 3

cash flow statement

Question 4

what type of activities can be listed under operating activities?

Answer 4

anything that is involved with daily life - focused on CASH
- revenue earned from employment, interest of savings account, expenses paid for interest, entertainment, dining, utilities

Question 5

when operations of an organization REQUIRE in an INCREASE in cash, reported as _________________

Answer 5

cash flow FROM operations

Question 6

when operations of an organization REQUIRE in an INFUSION in cash, reported as _________________

Answer 6

cash flow USED by operations
(if USED more cash than we took in = NEGATIVE number = cash flow USED)

Question 7

investing activities focus on changes in _________

Answer 7

non-current assets (buildings, equipment)

Question 8

a purchase of non-current asset is cash ________

Answer 8

cash outflow

Question 9

a sale of non-current asset is ___________

Answer 9

cash inflow

Question 10

investing activities refer to?

Answer 10

the things we ACQUIRE/INVEST in at a personal level
eg. car, electronics, furniture

Question 11

all transactions that affect non-current assets are a part of ______________

Answer 11

investing activities

Question 12

financing activities focus on?

Answer 12

changes in non-current liabilities (eg. notes, bonds payable) and owners’ equity (eg. stock, dividends)

cash we generate from transactions that involve non-current liabilities

Question 13

financing activities are rooted in the ________ section of the balance sheet

Answer 13

liability