What information is needed in order to prepare the SCF? - comparative balance sheet, the current
income statement, and the selected transaction data
What is the purpose of the SCF? - to provide relevant information about the cash receipts and
cash payments of an enterprise during a period
Why i...
Acct 221 Chapter 5 SCF
What information is needed in order to prepare the SCF? - comparative balance sheet, the current
income statement, and the selected transaction data
What is the purpose of the SCF? - to provide relevant information about the cash receipts and
cash payments of an enterprise during a period
Why is the SCF useful? - it provides answers to the following important questions
What questions does the SCF provide answers to? - 1. Where did cash come from during the
period?
2. What was cash used for during the period?
3. What was the change in the cash balance during the period?
What are the three actives in the SCF? - operating activities, investing activities, and financing
activities
Operating activities: - involve the cash effects of transactions that enter into determination of net
income
Investing activities: - include making and collecting loans, purchasing and selling investments
(both debt and equity) and property, planet, and equipment. generally it involves the purchases and
sales of non-current assets
Financing activities: - generally involve long-term liability and stockholders' equity items and
include (a) obtaining resources from owners (selling stock) and providing them with a return on their
investment (paying cash dividends) and (b) borrowing money from creditors and repaying that amounts
borrowed
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller PatrickKaylian. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R149,63. You're not tied to anything after your purchase.
