Asked by Future- Success on May 26, 2024
Verified
Describe the format of the statement of cash flows, including the reporting of significant noncash investing and financing activities.
Statement of Cash Flows
A financial report detailing the inflows and outflows of cash for a business over a specific period, highlighting operating, investing, and financing activities.
- Acquire knowledge and discern the constituents of the statement of cash flows, encompassing operating, investing, and financing operations.
- Clarify the intent, structure, and importance of noteworthy noncash investing and financing transactions in the cash flow statement.
Verified Answer
KL
Keriann LeBlancMay 30, 2024
Final Answer :
The statement of cash flows involves reporting cash receipts and cash payments organized into three categories: operating, financing, and investing. Noncash financing and investing items are reported in a note or in a separate schedule with the statement. The statement reconciles the beginning and ending cash and cash equivalents balances and explains the amount of net increase or decrease in this balance.
Learning Objectives
- Acquire knowledge and discern the constituents of the statement of cash flows, encompassing operating, investing, and financing operations.
- Clarify the intent, structure, and importance of noteworthy noncash investing and financing transactions in the cash flow statement.
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