I would like to share some useful information as I continue to learn it myself.
The statement of cash flows reports cash receipts and disbursements related to the three major activities of a firm:
- Operations are cash transactions associated with running the business.
- Investments are cash used in or provided by the firm's investment activities.
- Financing is cash raised from the issuance of new debt or equity capital or cash used to pay business expenses, past debts, or company dividends.
Source: Nichels-McHugh: Understanding Business, 8th Edition page 471
Posts
