Preparing the Cash Flow Statement — Direct Method

What this note covers

1. Purpose and Structure of the Cash Flow Statement
2. Operating Activities — Classification and Calculation
3. Investing and Financing Activities — Classification and the Going-Concern Assumption
4. Worked Example — Full Cash Flow Statement (Direct Method)
5. Reconciling the Closing Balance to the Cash at Bank Ledger Account
6. GST in the Cash Flow Statement — Detail and Common Pitfalls
7. Qualitative Characteristics, Assumptions, and Report Presentation Standards

7 sections · 14 key terms & formulas · 6 common mistakes