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- The advantages of the cash flow over the profit and loss account
1- The profit and loss account sets out the revenue and expense rather than the cash receipts and cash payments for the period.
2- When a company makes a sale on credit this will be reflected as an increase in the wealth in the profit and loss account but there is no cash collected.
3- It shows the cash coming from the operation
4- It shows the cash used in the investing activities
5- It shows the cash used in the financing activities
- The disadvantages of the cash flow over the profit and loss account
1- Businesses providing recurring services or poduct orders which are good candidates, while invoices for one-time orders might find it difficult to gain this type of funding.
2- If the mark up sale price of the goods or service provided is less than the amount of the invoice finance fee.
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Features and disadvantages of cash flow statement?
feature of cash flow
What are the disadvantages of the cash flow?
the disadvantages f the cash flow is it smells
Structure of cash flow statement?
structure of cash flow statement as follows:1
What is another name for the statement of cash flows?
Another name of cash flow statement is fund flow statement.
How in a society cash flow statement depriaciation be treated?
depreciation is not part of cash flow statement and in indirect method for cash flow it will be added back to cash flow from operating activities.
Features and disadvantages of cash flow statement?
feature of cash flow
What are the disadvantages of the cash flow?
the disadvantages f the cash flow is it smells
What is another name for cash flow of statement?
Another name of cash flow statement is fund flow statement.
What is cash-flow statement?
Cash flow statement is the statement which show the cash flow from operating, financing and investing activities.
Period expenses which do not affect the cash flow of the company should be excluded from the cash flow statement and how true is this statement?
Yes it is correct as cash flow statement only deals in cash so non cash items should be eliminated from cash flow statement.
Structure of cash flow statement?
structure of cash flow statement as follows:1
What statement reports Free cash flow?
Free cash flow is the sum of operating and investing cash flows, which are reported on the cash flow statement.
What is another name for the statement of cash flows?
Another name of cash flow statement is fund flow statement.
Do you include capital in cash flow statement?
yes changes in capital is shown in cash flow from financing activities in cash flow statement.
Features of Cash flow statement?
Sample cash flow statement as follows:1 - Cash flow from operating activitiesReceived from debtorsPayment to creditors2 - Cash flow from financing activitiesPurchase (sales) of asset3 - Cash flow from investing activitiesnew share capital introduced etc.
What is the difference between a proforma cash flow statement and a cash flow statement?
A cash flow statement is a financial statement that shows the changes in a company’s cash position over a given period. A cash flow projection is an analysis of how the company will make money in the future. The difference between these two statements is that the projection includes information about what will happen to a company's cash balance from now until then, whereas the statement only shows how much money has been made or spent during that time period.
Where do prepaid expenses go on the cash flow statement?
investing activities in cash flow statement
