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investing activities in cash flow statement
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How are loan receivables treated on the cash flow statement?
loan receivable is not part of cash flow statement as still no cash is received.
What is a cashflow budget?
Budgeted cash flow statement is the estimated cash flow statement for planning purpose before the actual activity starts
Importance of cash flow statements?
Cash flow satement is an important financial statement as it tells about the cash inflows and outflows from different business activities and this information is not available in any other financial statement.
Why is cash flow a concern for most businesses?
Cash flow is a projection of the cash a business will have on hand over the course of time, balanced with the expenses a business will have over that time. It matters because while income may be cyclical (you receive quarterly payments on a contract or a large percentage of your sales come at Christmas) expenses are often fixed each month. Doing a cash flow projection helps your business to budget so that you will always have enough cash on hand to meet your expenses as they come due.
Issued common stock for cash came from what section on the statement of cash flow?
Financing activities section
Does a decrease in prepaid expense increase or decrease cash flow?
Decrease in prepaid expenses increases the cash flow because if there is no prepaid expenses already in balance sheet then cash has to be paid to fulfill expenses but as there are prepaid expenses and company save cash that;s why it increases the cash flow.
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.
Difference between cash flow statement and income statement?
cash flow statement only shows cash transactions while income statement shows incomes and expenses for specific fiscal year.
Prepaid expense is debit balance or credit balance in cash flow statement?
Prepaid expense is a debit balance.... Explanation... increase in assets......debited decrease in assets ..........credited increase in liabilities ........credited decrease in liabilities..........debited Prepaids Expenses are current assets since future expenses have been covered. Accordingly, an increase to prepaid expenses is a debit.
What is the hardest thing to track on a personal cash flow statement?
Variable expenses
The difference between an income statement and cash flow statement?
Income statement shows the income or expenses related to one fiscal year while cash flow statement shows the cash inflows and outflows from different areas of business.
Campare between incom statement and cash flow statement?
Income statement and cash flow statement is different in this way that in income statement all incomes and expenses are shown within one fiscal year whether actual cash is paid or not while in cash flow statement only those transactions are listed due to which cash inflows or outflows from business.
What is cash flow statment?
A cash flow statement seeks to project or report cash flows after expenses that could be used for debt service or retained earnings.
Is cash in bank reported in cash flow statement?
The balance of a bank loan is a liability item on a balance sheet (or net worth statement). The principal and interest payments used to repay the bank loan are cash outflows (debt expenses) on a cash flow statement.
Is prepaid insurance reported on the income statement?
prepaid insurance is shown under cash flow from operating activities as reduction of cash flow or cash outflow.
Are expenses sometimes the same as cash flow outlaws?
No - expenses are on your profit and loss statement under "operating expenses". An example of a cash flow outlay is you've spent money on capital equipment (machinery or office equipment etc). This would be shown in the Investing Activities portion of your cash flow. The only items from the P&L that show up on the cash flow are your net income and/or depreciation or amortization.
Why might the revenue and cost figures shown on a standard income statement not be representative of the actual cash inflows and outflows that occurred during a period?
The Income Statement deals only with revenues and expenses. The Cash Flow Statement includes any form of cash flow, be it revenues, expenses, the sale or purchase of assets, payment or proceeds from liabilities, etc etc.. Hence the income statement does not provide a complete picture of the entity's cash activities. Does this make sense? If it doesn't, drop me a line :) Happy study!
