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Sale of goods or services for cash.

Financing operating and investing. Cash flows are categorized by their nature ie. Sale of equipment Select 4. Issuance of stock is a financing activity the resulting cash inflow is reported in financing activities section.

This video series is for those new to accounting or individuals who just want to know a little more about accounting basics. Learn vocabulary terms and more with flashcards games and other study tools. Cash flows from operating activities cash flows from investing activities and cash flows from financing activities.

The difference between investing and financing activities is that investing activities record the cash flow in and out as gains as well as losses respectively from the investment made whereas financing activities will restructure the capital investment making the cash inflow as obtained funds from the investors and outflow as payback funds to them. Classify each of the following items as an operating investing or financing activity 1. The key difference between investing and financing activities is that investing activities record the cash inflow and outflow that result in gains and losses from investments whereas financing activities record the cash inflows and outflows that result in a change in capital structure of the company by raising new capital and repaying investors.

Cash inflows in this category include cash receipts from issuing stock or. Prepare a cash flow statement showing operating investing and financing cash flows for these two financial years. Financing cash flow comes from conducting financing activities for the business.

162 Differentiate between Operating Investing and Financing Activities The statement of cash flows presents sources and uses of cash in three distinct categories. Compare cash flows from operating investing and financing activities and classify cash flow items as relating to one of those three categories given a. Operating investing financing-Cash inflows and outflows are presented separately -The major classes of cash inflows and outflows arising from investing and financing activities are disclosed separately-The composition of cash and cash equivalents must be disclosed-IAS 7 establishes that.

One of the hospitals surplus buildings has a book value of 3 million and it has been offered 5 million for this property. O Either the direct or indirect method can be used to. There are three sectionslabeled activitieson the cash.

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