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 amount of cash flows arising [...]
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, [...]
Generally speaking, the Fund Flow analysis requires the preparation of two statements:- 1. Statement of Changes in Working Capital 2. Fund Flow Statement. 1. Statement of Changes in Working Capital: The working capital does change due to various transactions. The working capital position at the beginning of a period is changed to a different position at the end of that [...]