MBAA-102 Accounting for Managers – Unit 4

MBAA-102 Accounting for Managers – Unit 4

Objectives: Understand the purpose and preparation of cash flow statement; Distinguish between operating activities, investing activities and financing activities; Prepare the cash flow statement using the direct method; Prepare the cash flow statement using the indirect method.

Materials: The relevant materials are available here.

Questions:

1. What are cash and cash equivalents?
2. Explain the meaning of a cash flow statement. Discuss its benefits.
3. How is a cash flow statement prepared?
4. Elaborate: (a) Operating Activities; (b) Investment Activities; and (c) Financing Activities