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Session Seven - Chapter 8
"Cash is King"
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AB
Operating ActivitiesActivities that deal with revenues and expenses.
Financing ActivitiesActivities that deal with financing of the business, debt and stock.
Investing ActivitiesActivities that deal with buring and selling assets and investment securities.
Direct methodA user friendly method of presenting the operating activities
Indirect methodA traditional method for oeprational activities starting with Net Income.
Net change in cashThe change in cash calcauted by the cash flow statement that matches the change from 1/1 to 12/31 in cash.
FASB 95the offical FASB cash flow statement.