Important Points for IC 89 - Management Accounting Exam
Page 16 Of 54
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Cash flows are inflows and outflows of cash and cash equivalents. It means the inflow of cash into the organisation and outflow from it.
Operating Activities are the principal revenue producing activities of a firm and other activities that are not investing or financial activities.
Investing activities are the acquisition and disposals of long term assets and other investments not included in cash equivalent.
Financing Activities are activities that result in changes in the size and composition of the owners capital and borrowings of the entity.
Financial assets are claims in paper or electronic form on the issuer like corporate body or the government.
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