2 Investing activities include transactions that affect long term assets and

2 investing activities include transactions that

This preview shows page 5 - 9 out of 25 pages.

2. Investing activities include transactions that affect long-term assets and other non-operating assets. 3. Financing activities include transactions that affect equity and non-operating liabilities. Conceptual Framework & Acctg. Standards (by: Zeus Vernon B. Millan) 5
Image of page 5
Examples of cash flows from Operating Activities a. cash receipts from the sale of goods, rendering of services, or other forms of income b. cash payments for purchases of goods and services c. cash payments for operating expenses, such as employee benefits, insurance, and the like, and payments or refunds of income taxes d. cash receipts and payments from contracts held for dealing or trading purposes Conceptual Framework & Acctg. Standards (by: Zeus Vernon B. Millan) 6
Image of page 6
Examples of cash flows from Investing Activities a. cash receipts and cash payments in the acquisition and disposal of property, plant and equipment, investment property, intangible assets and other noncurrent assets b. cash receipts and cash payments in the acquisition and sale of equity or debt instruments of other entities (other than those that are classified as cash equivalents or held for trading) c. cash receipts and cash payments on derivative assets and liabilities (other than those that are held for trading or classified as financing activities) d. loans to other parties and collections thereof (other than loans made by a financial institution) Conceptual Framework & Acctg. Standards (by: Zeus Vernon B. Millan) 7
Image of page 7
Examples of cash flows from Financing Activities a. cash receipts from issuing shares or other equity instruments and cash payments to redeem them b. cash receipts from issuing notes, loans, bonds and mortgage payable and other short-term or long-term borrowings, and their repayments c. cash payments by a lessee for the reduction of the outstanding liability relating to a lease. Conceptual Framework & Acctg. Standards (by: Zeus Vernon B.
Image of page 8
Image of page 9

You've reached the end of your free preview.

Want to read all 25 pages?

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes