Explanation Cash Flow Statement: The accounting statement that helps to maintain a record of all the cash inflows as well as the outflows of the company in a given period of time is known as a cash flow statement. It helps to estimate the balances of net cash, operating activities, investing activities and financing activities. Operating Activity: An activity that measures the flow of cash in the production process and delivery of goods as well as services is referred to as the operating activity. Investing Activity: The activity that includes the transactions relating to plant, machinery or other fixed assets and investment of debt or equity is referred to as the investing activity. Financing Activity: The activity with involves the cash flows related to the non-current liabilities and the owners’ equity is referred to as the financing activity. The list of cash receipts and payments given below is classified into various accounting activities as per IFRS: Cash receipt or payment Classification Explanation Cash payment to suppliers and employees Operating Activity Cash payment made is an operating activity as it involves an activity related to the net income. Cash payments for principal on debt Financing Activity Payment on debt is a type of paying of a liability. Thus, it is a type of financing activity. Cash receipts from customers Operating Activity Receipt of cash is an inflow of income. As it includes the direct cash flow, it is considered as an operating activity. Cash payments for property, plant and equipment Investing Activity The cash outflow here is for the non-current assets that are plant, property and equipment...

2nd Edition

ISBN: 9780134730370

Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

Publisher: PEARSON

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Chapter 22, Problem 22.2BE

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The type of activity; operating, investing or financing activities from the list of all cash receipts and payments as per IFRS.

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Chapter 22, Problem 22.1BE

Chapter 22, Problem 22.3BE

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Chapter 22 Solutions

Intermediate Accounting (2nd Edition)

Ch. 22 - Prob. 22.1Q Ch. 22 - Prob. 22.2Q Ch. 22 - Prob. 22.3Q Ch. 22 - Prob. 22.4Q Ch. 22 - Prob. 22.5Q Ch. 22 - How do firms reclassify gains and losses on the...Ch. 22 - Prob. 22.7Q Ch. 22 - Prob. 22.8Q Ch. 22 - Prob. 22.9Q Ch. 22 - Prob. 22.10Q

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The type of activity; operating, investing or financing activities from the list of all cash receipts and payments as per IFRS.

Solution Summary: The author explains the different types of cash receipts and payments as per IFRS.

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The type of activity; operating, investing or financing activities from the list of all cash receipts and payments as per IFRS.

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Chapter 22 Solutions