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Showing posts with the label CASH FLOW STATEMENT

Method of Cash Flow Statement - CA Inter Online Classes/CA Inter Pen-Drive Classes

Method of Cash Flow Statement - Operating Activity, Investing Activity, and Financial Activity - CA Inter Online Classes The Method of Cash Flow Statement - Cash Flow Statements (CFS) in accordance with CA Inter ICAI Latest Syllabus. Two methods are used to calculate cash flow from operating activities: indirect and direct, which both produce the same result. Direct Method: This method draws data from the income statement using cash receipts and cash disbursements from operating activities. Method of Cash Flow Statement divided into three parts - 1.Operating Activity - Operating Activity - Cash flows  from  operating activities  is a section of a company's  cash flow statement  that explains the sources and uses of  cash  from ongoing regular business  activities in  a given period. This typically includes net income from the income  statement , adjustments to net income, and changes in working capital. 2.Investing Activity -  Cash flow  from  investing activities  is a sectio

WHAT IS CASH FLOW STATEMENT (CFS)? Accountancy

CASH FLOW STATEMENT (CFS) - Accountancy Class 12   The Cash Flow Statement , or the pay decree, is a spending synopsis that summarizes the proportion of cash and cash partners entering and leaving an association. The income articulation (CFS) checks how well an association manages its cash position, which implies how well the association makes cash to pay its commitment duties and save its working expenses. The pay decree supplements the fiscal record and compensation verbalization and is a mandatory bit of an association's cash related reports since 1987.  The Cash Flow Statement (CFS) licenses budgetary pros to perceive how an association's exercises are running, where its money is coming from, and how money is being spent. The CFS is huge since it helps theorists with choosing if an association is on solid cash related parity. Banks, on the other hand, can use the CFS to choose how much cash is open (insinuated as liquidity) for the association to back its working expense