Flashcards in E describe how the cash flow statement is linked to the income statement and the balance sheet; Deck (4)
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1
Q
What’s the CF statement do? It reconciles. Reconciles what?
A
The CF statement reconciles the beg + ending balances of cash over an accounting period. Changes in cash to CF statement are a result of investing, operating, financing
AKA
Op+Inv+Fin = changes in cash balance
Change in Cash balance + Beg. cash balance = ending cash balance
2
Q
Op act translation to NI
A
CA and CL or those day to day things (in order of liquidity)
Cash and cash equiv. Mrktbl sec, A/R, Inv, other(prepaid exp, deferred tax assets)
CL’s: Accts P, notes payable and portions of long term debt, accrued liabilities, unearned rev
3
Q
Inv translation to NI
A
noncurrent assets (which provide information about investment activities) (*which forms the foundation upon which the firm operates) PPE, inv. prop., intangibles, goodwill
4
Q
Fin activity trans to NI
A
noncurrent liabilities and equity