cash flows study guide

cash flows study guide - 1. Cash Provided From or Used By...

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1. Cash Provided From or Used By Operating Activities This section of the cash flow statement reports the company's net income and then converts it from the accrual basis to the cash basis by using the changes in the balances of current asset and current liability accounts, such as: Accounts Receivable Inventory Supplies Prepaid Insurance Other Current Assets Notes Payable (generally due within one year) Accounts Payable Wages Payable Payroll Taxes Payable Interest Payable Income Taxes Payable Unearned Revenues Other Current Liabilities In addition to using the changes in current assets and current liabilities, the operating activities section has adjustments for depreciation expense and for the gains and losses on the sale of long-term assets. 2. Cash Provided From or Used By Investing Activities
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This section of the cash flow statement reports changes in the balances fixed assets or long-term asset accounts, such as: Long-term Investments Land Buildings Equipment Vehicles
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This note was uploaded on 02/22/2011 for the course ACCT ACCT 312 taught by Professor Roufaiel during the Winter '10 term at DeVry Chicago.

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cash flows study guide - 1. Cash Provided From or Used By...

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