Statement of Cash Flow

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Statement of Cash Flow


Lecture number:
32
Pages:
2
Type:
Lecture Note
School:
Miami University, Oxford
Course:
Acc 221 - Intro to Financial Accounting
Edition:
1
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Lecture 32 Outline of Previous Lecture  Section 31: Equity Cont.  Common Stock o Authorizing shares o Earnings/ share Outline of Current Lecture  Section 32: Statement of Cash Flow  Financial Statement o Introduction o Types of transactions o Balance Sheets o Writing the Statement Current Lecture  Section 32: Statement of Cash Flow  Financial Statement o Introduction  What happens with your cash?  Transactions raise or decrease funds  Why? This financial statement aims to explain what happened to your cash. This is understood through looking into other accounts.  Only interested when cash exchanges hands o Types of transactions  Financing activity  Dr. cash $50,000 issuing stock  Financing activity, cash increases, issue shared stock  Investing activity  Invest $30,000 in land and equipment  Investing activity, cash decreases, buying land & Equip.  Operating activity o Balance sheets  Look at current balance sheet and balance sheet of former accounting cycle  Look at how accounts have either increased or decreased o Assets  Increase = use of cash  Decrease = source of cash o Liabilities ACC 221 1st Edition



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