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a cash flow statement is essencially a statement which shows you the flow of cash from the three basic activitiesn of any business. ie its OPERATING ACTIVITY, INVESTING ACTIVITY and FINANCING ACTIVITY.
Here flow of cash means INFLOW AND OUTFLOWS of cash. Simply speaking- wat activity will bring INthe cash for a business and wat activity take the cash OUT..
example: purchase of an asset (for cash/bank) will reduce or take OUT the cash... meaning CASH OUTFLOwS.. and since it intails the business to improve it investments.. it forms part of the investing activity
similarlly, issue of shares (for cash) will bing in cash for the business.. which is a cash INFLOW.. and it is a FINANCING activity as it helps the business to finance its operations. . on the oder hand if you buy back shares or debentures/ prefrence shares ( called redemption) is an OUT FLOW OF cash.
any activity such as payment of wages etc will form a part of your OPERATING ACTIVITY. (as it relates directly to ur daily operations.)
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What is another name for cash flow of statement?
Another name of cash flow statement is fund flow statement.
What is another name for the statement of cash flows?
Another name of cash flow statement is fund flow statement.
Does purchasing equipment with a note payable appear on the cash flow statement?
No it must be a fund flow statement
What constitute an financial statement?
balance sheet profit&loss account cash flow statement fund flow statement
How can you Prepare fund flow statement?
A fund flow statement or a cash flow statement records the changes in monetary funds over a period of time, usually by comparing the latest position at balance sheet date with the corresponding monetary position a year ago.There are various elements of business that affect fund/cash flow. These include such things as increased sales, reductions or increases in debtors, longer or shorter times in paying creditors, repayments of loans, etc., a summary of which should be shown on separate lines of the statement. It can start with a section listing the elements that contribute to an increase in cash, then the next section lists those items which have contributed to a decrease in cash.Space (and time!) does not permit more comprehensive details of what is needed and how to do it. You should consult a text book on Financial Accounting and look at the fund/cash flow statement of a company similar to the one for which you wish to prepare such a statement.At the end of the fund/cash flow statement, if you have done all your calculations correctly, and taken everything that affects cash movement into account, your final figure will equal the cash figure in the balance sheet.
What is another name for cash flow statement?
Other name of income statement is “Profit and loss account” as this statement shows all the incomes and expenses of one fiscal year and at the end either there is profit or loss so that’s why it is called “profit and loss statement” as well.
What is the difference between fund flow statement and cash flow statement?
nothing both r similarAlternate answer:The fund flow statement shows the sources and uses of working capital. Working capital equals current assets minus current liabilities (usually excluding the short term portion of interest bearing debt). The cash flow statement explains the change in cash (and cash equivalents), by showing the change in cash as a result of operating, investing and financing activities. The sum of these equal the change in cash over the period.An important difference is that working capital is broader than 'just' cash (and cash equivalents). For example, working capital can increase even though cash is decreasing (for example when the increase in inventory and accounts receivables is larger than the cash decline).Nowadays companies provide a cash flow statement.
What defference between cash flow and funds flow ststement?
A distinction between these two statements may be briefed asFunds Flow Statement is concerned with all items constituting funds (Working Capital)for the business while Cash Flow Statement deals only with cash transactions. In other words, a transaction affecting working capital other than cash will affect Funds statement, and not the Cash Flow Statement.In Funds Flow Statement, net increase or decrease in working capital is recorded while in Cash Flow Statement, individual item involving cash is taken into account.Funds Flow statement is started with the opening cash balance and closed with the closing cash balance records only cash transactions.Cash Flow Statement is started with the opening cash balance and closed with ht closing cash balance while there a no opening or closing balances in Funds Flow Statement.
Cash flow Vs funds flow?
Cash flows and fund flows
What is role of cash Flow Statement?
Cash flow statement means the cash inflow and outflow from business due to operating, financing and investing activities.
How is a fund flow statement prepared give answer with imaginary figures?
how is a fund flow statement prepared ?give your answer with imaginary figure.
Difference between cash budget and fund flow statement?
1. cash flow statement is a technique of past analysis where as cash budget is a technique of future financial forecasting.2. cash flow covers a period of 1 year. in cash budget it is broken into monthly weekly segments.3.cash flow does not emphasis on a particular source and use. cash budget emphasis on financial pattern to meet seasonal and temporary cash need.
