Cash flow accountancy easy explanation of the whole chapter?
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Explanation:
Here are four steps to help you create your own cash flow statement.
Start with the Opening Balance. ...
Calculate the Cash Coming in (Sources of Cash) ...
Determine the Cash Going Out (Uses of Cash) ...
Subtract Uses of Cash (Step 3) from your Cash Balance (sum of Steps 1 and 2) ...
An Alternative Method.
Answer:
The Meaning of Cash Flow Statement or statement of cash flows can be defined as ‘cash flow statements exhibit the flow of incoming and outgoing cash. This statement assesses the ability of the enterprise to generate cash and to utilize the cash. This statement is one of the tools for assessing the liquidity and solvency of the enterprise’.
Cash Flow Statement
A cash flow statement is a financial statement that presents total data. Including cash inflows a business gains from its continuing progress and external financing sources, as well as all cash outflows that pay for trading activities and finances during a delivered time. In other words, a cash flow statement is a financial statement that estimates the cash produced or used by a firm in a presented time.
As mentioned initially, the cash flow statement furnishes data about the shift in the position of Cash Equivalents and Cash of a firm, over an accounting period. The pursuits according to this change are incorporated into investing, financing and operating. However,
Explanation:
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