Cash Flows Accounting vs Finance Posted Version

Cash Flows Accounting vs Finance Posted Version - Because...

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Cash Flows: Accounting vs. Finance Both Accounting and Finance use measures with “Cash Flow” in them but this doesn’t mean that such measures are the same. The Accounting Statement of Cash Flows contains three major measures of cash flows--those resulting from Operating, Investing and Financing activities. In Finance 3101, you will encounter four major measures of cash flow—Operating Cash Flow, Cash Flow from Assets, Cash Flow to Creditors and Cash Flow to Owners (Shareholders).
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Unformatted text preview: Because of different perspectives between Accounting and Finance, none of the four measures favored by Finance match exactly any of the three measures from the Accounting Statement of Cash Flows. The key to not letting such differences impede your learning of either Accounting or Finance is awareness that similar-sounding measures are not identical and a concentrated effort to learn the measures emphasized by both disciplines....
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