Fairman Y2 T2 LTU Fin. Acc. Chapter 18-a.pptVIP

OVERVIEW The purpose of the statement of cash flows is to Report cash receipts and cash payments of an entity over a period of time Classify the cash flows as operating, investing, and financing activities Detail the changes in the cash account on the balance sheet OVERVIEW II EXAMPLE PROBLEM #85-18 True or False? Under cash-basis accounting, no adjustments would be needed and no cash flow statement would be needed. Explain. PURPOSE OF THE CASH FLOW STATEMENT A statement of cash flows Shows the relationship of net income to changes in cash balances Helps to predict future cash flows Evaluat