Statement of Cash Flows: Operating Activities Example - Financial Accounting video

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  1. Dr. Brian Routh (TheAccountingDr)
  2. statement of cash flows
  3. cash inflows
  4. cash outflows
  5. operating activities
  6. cash flow statement
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Комментарии
Автор

Unearned revenue is a current liability account and is analyzed in the operating activities section of the statement of cash flows. If unearned revenues increase that means you have received cash that you have not yet earned and does not yet appear in net income. If unearned revenues decrease then you have earned cash that you previously received in advance.

TheAccountingDr
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You would add any increases to unearned revenues in the operating activities section. If unearned revenues decrease, this means you have now earned the cash that you previously received and would subtract any decreases in unearned revenues in the operating activities section of the statement of cash flows.

TheAccountingDr
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Thank you for watching my video on the statement of cash flows: operating activities example. This video is specific to the operating activities only. However, to answer your question, once you have computed the cash provided/used by operating, investing and financing activities, you would sum the three sections. This number represents the change in the cash for the period covered. If you take the change that you computed and add that to the beginning cash balance you should find ending cash.

TheAccountingDr
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Thank you very much Dr.Brian Routh for this video.

ALQAHTANI
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how about increase in unearned revenue?

jmythao
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how about stock it will increase or decrease

FaisalMalik-liyy