[Selen63]

Please assist in what transtions would be recorded as cash inflow, cash outflowand non cashflow as well as transactions that would be recorded as operating activity, investing activtiy, financial activity and non cashflow transaction.

[Just Looking]

Think about the cash affect of transactions to understand cash flow statements. Cash flow statements do not reflect accrued revenues or expenses. It only deals with the cash that goes in and out of a business. For example, you receive cash when an Account Receivable is paid - cash inflow. You pay cash when you pay Accounts Payable - cash outflow. You are only going to show something if the cash was paid or received.

A non-cash flow item could be something like deprecation. No cash actually changes hands. An operating activity could be something like Direct Labor or Materials, which have actually been paid - not just accrued. An investing activity could be interest earned or a gain or loss on sale of stock, but is only reflected if the cash has actually been received.

Does that answer your question?