Fun Cash Flow Statement In Management Accounting
In the cash flow statement interest received by the company is classified as A Operating activities B Cash and cash equivalents C Investing activities D Financing activities Answer.
Cash flow statement in management accounting. The important terms used in a cash flow statement are as follows. It shows the inflows and outflows of cash. Cash Flow Statement is a report that gives the movement of cash during the period under consideration.
Statement of cash flows is one of the three basic financial statements along with Balance Sheet and Income Statement. Cash Flow Statement Corporate and Management Accounting MCQ. It also breaks down where that money goes so you can see if your business is making more money than it spends.
It gives an idea about the inflow and outflow of cash from operating investing and financing activities. The Statement of Cash Flows also referred to as the cash flow statement is one of the three key financial statements that report the cash generated and spent during a specific period of time eg a month quarter or year. The cash flow statement measures how well a.
Some of the important advantages of Cash-flow statements are discussed below. Objectives of Cash Flow Statement The Cash Flow Statement is prepared because of number of merits which are offered by it. A cash flow statement details all your sources of cash including sales and shareholder investments.
Cash flow management broadly includes how a business manages its daily operations business activities and financial investments. A Cash Flow Statement also called the Statement of Cash Flows shows how much cash is generated and used during a given time period. The purpose of a cash flow statement is to provide a detailed picture of what happened to a businesss cash during a specified period known as the accounting period.
The information contained in cash flow statement can help the management in the field of short run financial planning and cash control. A business has to generate adequate cash flow from its activities to survive cover expenses repay investors and for business expansion. From the following summary of Cash Account of X Ltd prepare Cash Flow Statement for the year ended 31st March 2007 in accordance with AS-3 using the direct method.