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However, where financial institution overdrafts that are repayable on demand type an integral a half of an entity’s money management, financial institution overdrafts are included as a part of money and money equivalents. Equity investments are excluded from cash equivalents until they are, in substance, money equivalents, for instance in the case of choice shares acquired within a short period of their maturity and with a specified redemption date. Investing activities are the acquisition and disposal of long-term belongings and other investments not included in cash equivalents. Operating activities are the principal revenue-producing actions of the entity and different activities that are not investing or financing activities. Money flows are inflows and outflows of money and cash equivalents.

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