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Operating Activities : the cash effects of transactions that create revenues and expenses. O perating, I nvesting, and F inancing 1. CLASSIFICATION OF CASH FLOWS OIF I can pass accounting. Cash investing and financing transactions during the period. Reasons for difference between net income and net cash provided (used) by operatingĤ. Entity’s ability to pay dividends and meet obligations.ģ. Entity’s ability to generate future cash flows.Ģ.  Statement of Cash Flows: reports the cash receipts and cash payments from operating, investing,Īnd financing activities during a period.ġ. USEFULNESS OF THE STATEMENT OF CASH FLOWS Padilla Ioannis Miaculis Martha Cyr)Ĭhapter 12 - STATEMENT OF CASHFLOWS LO 1: Discuss the usefulness and format of the statement of cash flows.

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