Financing activities
You'll learn how financing activities are classified and calculated within the cash flow statement. This video covers the key transactions that affect equity and borrowings—such as share issues, debt repayment, and dividends paid—and shows you how to use T accounts to extract the cash figures you need.
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In this lesson
- 0:00 Financing activities overview
- 1:11 Using T accounts for cash movements
- 2:21 Calculating debt and share capital changes
- 3:08 Working out dividends paid
- 4:06 Advantages and drawbacks of cash flow statements
- 5:37 Summary of all three activity sections
- 6:35 Direct vs indirect method quiz
About this lesson
You'll work through practical examples of calculating debt issued, share capital movements, and dividends paid, then see how financing activities fit alongside operating and investing activities in the complete statement. Understanding this section is essential for Financial Reporting and Strategic Business Reporting papers, where cash flow statements feature regularly in both objective tests and case studies.
Duration: 8m
Transcript
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