Archive | Cash Flow Statement

Classification of Cash Flow Statement | Accounting

A cash flow statement aims to determine the effects of cash of different type of cash inflows and outflows. In this process, all cash flows are classified into three categories:- 1. Cash flows from Operating Activities 2. Cash flows from Investing Activities 3. Cash flows from Financing Activities. 1. Cash Flows from Operating Activities: The […]

Cash Flow Statement (As per AS 3) | Accounting

In this article we will discuss about:- 1. Introduction to Cash Flow Statement 2. Meaning of Cash Flow Statement 3. Definition 4. Objectives 5. Scope 6. Benefits. Introduction to Cash Flow Statement: In June 1981, the Institute of Chartered Accountants of India issued Accounting Standard 3: Changes in Financial position. This accounting standard dealt with […]

Cash Flow Statement: Uses and Limitations | Accounting

In this article we will discuss about the uses and limitations of cash flow statement. Uses of Cash Flow Statement: A Cash Flow Statement is of primary importance to the financial management. It is an essential tool of short-term financial analysis. Its main uses are as follows: 1. Cash Flow Statement facilitates to prepare sound […]

Cash Flow Statement: Problems and Solutions | Accounting

Here is a compilation of top three accounting problems on cash flow statement with its relevant solutions. Problem 1: From the following summary of Cash Account of X Ltd., prepare Cash Flow Statement for the year ended 31st March 2007 in accordance with AS-3 using the direct method. The company does not have any cash […]

Preparation of Cash Flow Statement (With Example)

In this article we will discuss about the preparation of cash flow statement, explained with the help of suitable illustrations. The Cash Flow Statement should report cash flows during the period classified by operating, Investing and Financing Activities. An enterprise presents its cash flows from operating, investing and financing activities in a manner which is […]

Cash Flow Statement | Financial Management

Cashflow statement provides information about the cash receipts and payments of a firm for a given period. It provides important information that compliments the profit and loss account and balance sheet. The information about the cashflows of a firm is useful in providing users or financial statements with a basis to assess the ability of […]

Cash Flow Statement: Definition, Classification and Advantages

In this article we will discuss about the Cash Flow Statement:- 1. Introduction to Cash Flow Statement 2. Definition of Cash Flow Statement 3. Classification of Activities 4. Advantages 5. Limitations. Contents: Introduction to Cash Flow Statement Definition of Cash Flow Statement Classification of Activities in Cash Flow Statement Advantages of Cash Flow Statement Limitations […]

Maintaining Cash Flow Statement

The following points highlight the top two methods for maintaining cash flow statement. The methods are: 1. Direct Method 2. Indirect Method. Cash Flow Statement: Method # 1. Direct Method: Under the direct method, cash receipts from operating revenues and cash payments for operating expenses are calculated and shown in the cash flow statement in […]

Cash Flow Statement: Concept, Classification and Significance

In this article we will discuss about Cash Flow Statement:- 1. Concept of Cash Flow Statement 2. Classification of Cash Flow Statement 3. Presentation 4. Significance 5. Limitations. Concept of Cash Flow Statement: A Cash flow statement discloses net increase (or decrease) in cash during an accounting period. As per AS-3 (Revised) the objective of […]

Cash Flow Statement: Meaning, Importance and Preparation

After reading this article you will learn about Cash Flow Statement:- 1. Meaning of Cash Flow Analysis 2. Importance of Cash Flow Statement3. Limitations 4. How to Prepare?. Meaning of Cash Flow Statement: A Cash Flow Statement is a statement which is prepared by acquiring Cash from different sources and the application of the same […]

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