Statement of Cash flows

Question 1

what are the 3 segments on the statement of cash flows, in order?

Answer 1

1. operating activities
2. Investing activities
3. Financing activities

Question 2

What is covered under operating activities ? (3)

Answer 2

• normal activities of entity
• revenue/expenses
• movement in current assets/liabilities

Question 3

what is covered under investing activities ?

Answer 3

acquisition or disposal of non-current assets

Question 4

what is covered under financing activities ?

Answer 4

changes to non-current liabilities or equity

Question 5

what is cash accounting and what is accrual accounting?

Answer 5

cash accounting - based on cash in cash out

accrual accounting - noted when transaction takes place, not when payment occurs.