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When did the statement of cash flows become a requirement for business?
Wiki User
∙ 13y ago
The statement of cash flows replaced the statement of changes in financial position in 1987 as a required financial statement for all publically traded business enterprises.
Wiki User
∙ 13y ago
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What does a statement of cash flows show?
A statement of cash flows is also called a cash flow statement. The statement of cash flows is a cash basis report that shows the inflows and outflows of cash for the operating, investing and financing resources of a business.
Which financial statement is primarily concerned with reporting the profit-related activities of a business?
Statement of Cash Flows
What is cash flow statement?
Considering what is cash flows statement? This statement is one of the three main financial statements any business has to prepare, i.e. balance sheet, income statement and cash flows statement. Cash flows statement indicates what are the sources from which business receives cash and what are the main uses of cash. Statement of cash flows is a very important, as it indicates whether the business is able to generate cash from it's main activities, whether there is no excessive borrowing, how the business uses cash generated. The other financial statements (income statement and balance sheet) do not provide such information. Also knowing what is cash flows statementallows you to compare net profit reflected in the income statement and change in cash for the same period and estimate quality of net profit and determine whether the business has enough cash. In certain cases it might happen that based on the income statement the business is profitable, however it has no cash. More detailed information can be found on http://free-accounting-tutor.com/
How might a statement of cash flows be used?
You might use it to apply for credit (a loan).
If you were buying a business what would you look for in a company's financial statements?
Balance Sheet (What We've Got)Income Statement (How'd We Do?)Statement of Cash Flows (Where'd the Money Go?)
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.
A statement of cash flows allows a financial analyst to determine?
If the firm has sufficient funds to pay liabilities.
What does the statement of cash flows list?
No
The statement of cash flows may also be called the?
funds statement
Statement of cash flows?
In financial accounting, a cash flow statement or statement of cash flows is a financial statement that shows a company's flow of cash. The money coming into the business is called cash inflow, and money going out from the business is called cash outflow. The statement shows how changes in balance sheet and income accounts affect cash and cash equivalents, and breaks the analysis down to operating, investing, and financing activities. As an analytical tool, the statement of cash flows is useful in determining the short-term viability of a company, particularly its ability to pay bills. International Accounting Standard 7 (IAS 7), is the International Accounting Standard that deals with cash flow statements. In financial accounting, a cash flow statement or statement of cash flows is a financial statement that shows a company's flow of cash. The money coming into the business is called cash inflow, and money going out from the business is called cash outflow. The statement shows how changes in balance sheet and income accounts affect cash and cash equivalents, and breaks the analysis down to operating, investing, and financing activities. As an analytical tool, the statement of cash flows is useful in determining the short-term viability of a company, particularly its ability to pay bills. International Accounting Standard 7 (IAS 7), is the International Accounting Standard that deals with cash flow statements.
The statement of cash flows would disclose the payment of a dividend?
nowhere on the statement
What is Unsecured Business Loan?
'Unsecured Business Loan' product addresses the capital requirement of such businesses. Simply put the term 'unsecured business loan' means the type of loan that doesn't require any collateral. The documents required are last 12 months bank statement, last 2-3 years ITR, PAN, residence and business address proof. Loan eligibility is calculated on the basis of the business cash flows. These loans are usually shorter term loans of 1-3 years with fixed monthly repayments.
