What are the different cash inflows & cash outflows of operating activity?
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A Statement of Cash Flows (or Cash FlowStatement) shows the movement in theCash account of a company. It presentscash inflows (receipts) and outflows(payments) in the three activities of business: operating, investing, and financing. Accountants follow the accrual basis in measuring income and expenses
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Operating activities are a business ' tasks directly related to the commercial distribution of its goods and/or services.
- Operating cash flow is the amount of cash generated within a specific period of time by a company's daily operating activities. OCF starts with net earnings.
- Cash flow statement shows money inflows and outflows in the various business operations, net cash increase or decrease, and the corresponding cash balance at the end of the period.
- Cash inflows and outflows are further classified in three activities namely operating, investing, and financing. Cash inflows apply to cash receipts, while cash outflow refers to purchases or disbursements.
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