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Investing activities
? cash advances and loans made to other parties
? cash receipts from the repayment of advances and loans made to other parties.
? cash payements to acquire shares or debentures of other entities.FINANCE ACTIVITIES
? Cash payments to owners to acquire or redeem the entity’s shares
? Cash proceeds from issuing sharesThe bullets points which I have written under both headings seems similar can you help me by differentiating both as I cnt
As i know that investing activities is related to those activities in which you buy a non current or cash receipts from sale of nca, intangibles and other non current assets.“? cash payements to acquire shares or debentures of other entities.” – is not in your syllabus – consolidated cash flows are not examined until P2
“? cash advances and loans made to other parties
? cash receipts from the repayment of advances and loans made to other parties.”These two involve money being lent to ‘outsiders’ and the repayment of that money
“? Cash payments to owners to acquire or redeem the entity’s shares
? Cash proceeds from issuing shares”These two involve the issuing of shares to ‘insiders’ (our own shareholders) and money paid to them on the occasion of the redemption of their shares
Cash flow
Example 5 DOVILET-ACCOUNT
DIVIDEND PAYABLE _____________________
Cash $1431 / b/f $831
/ I/S $600
C/F $915 / I/s $915Sir, $915000 is a carried forward figure why it is added to income statement for the year 2009 as well
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