Cash Flow Statements (Grade 12 NSC Matric Accounting): Flashcards
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Purpose of cash flow statement
Purpose of cash flow statement
Tracks actual movement of cash in and out of business
How cash inflows appear in cash flow statement
How cash inflows appear in cash flow statement
Without brackets
How cash outflows appear in cash flow statement
How cash outflows appear in cash flow statement
In brackets
Three main sections of cash flow statement
Three main sections of cash flow statement
Operating, investing, and financing activities
What operating activities represent
What operating activities represent
Most common source of cash; main business operations
What investing activities focus on
What investing activities focus on
Buying and selling of fixed assets and investments
What financing activities show
What financing activities show
How company is funded through loans and capital
Why depreciation is added back in Note 1
Why depreciation is added back in Note 1
Non-cash expense; reduces profit but no cash leaves business
What an increase in inventory represents
What an increase in inventory represents
Cash outflow (more stock purchased)
Final verification check for cash flow statement
Final verification check for cash flow statement
Net change in cash = difference in opening/closing balances