Statement of Cash flow

Question 1

Objective of a statement of cash flows

Answer 1

To show an overall view of money flowing in and out of a company during an accounting period

Question 2

IAS 7

Answer 2

The international accounting standard that sets out the requirements of statements of cash flows.

Question 3

statement of cash flows is divided into three sections

Answer 3

Operating activities - the main revenue producing activities of the business, together with the payment of interest and tax

Investing activities - the purchase and sale of sale of non current assets, other investments, together with interest and dividends received.

Financing activities - receipts from the issue of new shares, payments to repay shares, changes in non current loans, payment of dividends

Question 4

limited companies

Answer 4

Are required to include a statement of cash flows as a part of their financial statements.