Cashflow Statements (Leaving Cert Accounting): Flashcards

Explain difference in cash balances from start to end of financial year

Financial Reporting Standard 1 - sets cashflow statement layouts

Profit doesn't always equal cash - profitable firms can have cashflow problems

Reduces cash flow

Reduces cash flow

Improves cash flow

Transactions affecting profit but not causing actual cash movement

Added back to operating profit (non-cash expense)

$\text{Net Debt} = \text{Borrowings} - \text{Cash} + \text{Liquid Resources}$

Short-term investments like government securities or short-term deposits