Cash Flow & Accounting Policies

What does this film teach?

How profit is turned into cash movement, and how a change of method or a past error is written down.

What do you enter?

• The cash flow class of each account
• A policy or estimate note
• A prior period adjustment when money is involved

Its effect

• Operating, investing and financing sections
• Any gap is shown, never forced to zero
• Corrections go to equity, not to this year\'s profit
• Next: Supply request & approval (Film 36)