Accounting Business Reporting for Decision Making

LEARNING OBJECTIVES

After studying this chapter, you should be able to:

of cash flows 7.1 The purpose and usefulness of a statement

7.2 outline the format and the classification of cash flows in the statement of cash flows

7.3 produce a statement of cash flows using the direct method and a reconciliation using the

indirect method

7.4 evaluate an entity’s performance using a statement of cash flows.

CHAPTER 7

Statement of cash flows

Contents

Chapter 7 preview

7.1 The purpose and usefulness of a statement

of cash flows

other financial statements Relationship of the statement of cash flows to

7.3 Preparing the statement of cash flows

7.4 Analysing the statement of cash flows