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 the financial statement that summarised, [...]
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 financial policies. It also helps [...]
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 equivalents. Problem 2: Prepare Cash [...]