Describe the Uses and Sources of Cash
Learn vocabulary terms and more with flashcards games and other study tools. Each ofthese uses of cash is examined below. Cash Flow Statement Analyzing Cash Flow From Investing Activities Assets are typically a source of cash as they can be sold to gain cash and liabilities are uses of cash as they turn into an expense down the line either paying accrued expenses or long-term liabilities. . A firms activity in which cash is spent. Cash flow statement is not a substitute of income statement ie a profit and loss account and a balance sheet. Companies use cash to repay creditorsfrom whom they borrowed cash pay owners for their investments pay for costsinvolved in management operations and to acquire other resources. It should be understood that it is the declaration of dividend rather than the payment of the dividend which is the use of funds. The procedure for preparing a cash flow statement is different from the. Sources of...