0
What else can I help you with?
What is cash flow statement and why it is prepared?
Cash flow statement shows the cash flows from different activities and it is prepared to show how much cash inflow and outflow from operating, investing and financing activities.
Why funds flow statement prepared?
A funds flow statement compares a company's actual cash flow with its predicted cash flow. This allows a company to examine the factors that may have caused a failure to meet goals.
Why is cash flow statement prepared by companies?
It is prepared by the companies to show that how cash inflows and outflows are arrived from different business activities.
Does current income go into cash flow statement?
Yes in indirect method of cash flow statement , cash flow from operating activities is prepared by taking the current year income as starting point
What is prepared first is it cash flow statement or balance sheet and income statement?
The Income Statement must be prepared first because the Current Profit or Loss (from the Income Statement) is needed in the Equity section of the Balance Sheet to make it balance. Also, the current profit or loss is the starting point to calculate Cash from Operations needed for the Cash Flow Statement.
Which acconting standard is for cash flow statement?
International accounting standard number 7 is about cash flow statements and how it should be prepared.
What is the order that the financial statements should be prepared?
the income statement is first, followed by the the statement of owner or stockholder's equity balance sheet, and last the cash flow statement.
What are the four financial statements explain their basic content and why it is important that the statements are prepared?
balance sheet,income statement,cash flow statement,retained earnings
In Cash flow statement what is direct method and indirect method?
Direct and indirect method of preparing cash flow statement is same with only one difference which is under indirect method 'Cash flow from operating activities' is prepared by adjusting the net profit amount for non cash items while 'Cash flow from financing activities' and 'Cash flow from investing activities' is prepared in same manner in both methods.
What do you mean by funds flow analysis.explain the mechanism involved in preparation of funds flow statement?
It is the statement of change in financial position, prepared to determine only source and uses of working capital between date of to balance sheet.
How is bank overdraft treated in the cash flow statement?
Prime purpose of preparing cash flow statement is to tally the closing bank balance with opening bank balance so if there is a bank overdraft or negative bank balance it will automatically adjusted when complete cash flow statement is prepared. If after the preparation of cash flow, cash flow balance and bank balance don't tally it means there is some mistake in cash flow statment and it should be reviewed for any correcions.
What is another name for cash flow of statement?
Another name of cash flow statement is fund flow statement.
