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HW - ACCT312 Chapter 23 Questions 1 The statement of cash...

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ACCT312 Chapter 23 Questions 1. The statement of cash flows provides information on the cash receipts and cash payments of an organization by classifying transactions between one of three categories which include operations, investing, and financing. 2. The information from the statement of cash flows can be used to help assess certain levels of the organization such as its ability to generate future cash flows and its ability to pay dividends and meet obligations. As well, it shows the causes in the difference between net income and net cash flow from operating activities and details the cash and non-cash investing and financing transactions performed during a certain period. 3. Operating activities involve the cash effects of transactions that enter into the determination of net income. These transactions pertain to accounts found on the income statement such as cash receipts from sales, inventory, or expenses. Investing pertains to the long-term assets an organization holds. These can include both investments the organization holds and loans they make and collect on. Financing
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