CA Inter Cash Flow Statement

Cash Flow Statement & Cash Equivalents

Data about the cash flows of an enterprise is valuable in furnishing clients of financial statements with a premise to evaluate the capacity of the enterprise to create cash and cash equivalents and the requirements of the undertaking to use those cash flows. The monetary choices that are taken by clients require an assessment of the capacity of an enterprise to produce cash and cash equivalents and certainty of their generation. The Standard arrangements with the provision of data about the historical changes in cash and cash equivalents of a venture by methods for a cash flows statement which characterizes cash flows during the period from operating, investing and financial activities.

 

BENEFITS OF CASH FLOW STATEMENT

• A cash flow statement, when utilized related to the next monetary articulations, gives data that empowers clients to assess the progressions in net resources of an undertaking, its monetary structure (counting its liquidity and dissolve ability) and its capacity to influence the sums and timing of incomes in request to adjust to changing conditions and openings.

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