Accounting - Examples of cash flow items
Examples of cash flow items
cash sales/cash fees
selling of a non-current asset; e.g. motor vehicles
additional cash capital
cash received from debtors for goods and services
buying non-current asset; e.g. equipment
cash payments to creditors
cash payment of expenses
There are three essential skills required in preparing a cash flow
* determining whether the item is a cash flow
* if yes, classifying that item
* reconstructing accounts to determine the money amount involved
Cash flow statements should be studied in conjunction with other reports
such as the Profit and Los statement and the balance sheet.
At all times it is important that you indicate that only 'cash' items
In the table above it is the 'proceeds from the sale of a non-current
asset' that is reported as an investing inflow. The cash paid for a
non-current asset is reported as an investing outflow.
Previous | Next
Log in to save your progress and obtain a certificate in Alison’s free Fundamentals of Financial Accounting online course
Sign up to save your progress and obtain a certificate in Alison’s free Fundamentals of Financial Accounting online course
Please enter you email address and we will mail you a link to reset your password.