B Com Exam > B Com Questions > Needed a Document for Cash flow statment? Re...
Start Learning for Free
Needed a Document for Cash flow statment?
Verified Answer
Needed a Document for Cash flow statment? Related: Cash Flow Stateme...
Three document cornerstones of any business are the income statement, the balance sheet, and the statement of cash flows. Of the three, the statement of cash flows may be the most important because it's the one document that tells you whether you're going to have the money you need to run your business. It describes the flow of funds (which is your working capital) in and out of your business in the given accounting period and shows you where the business is trending—what's working well and where improvements are needed.
A cash flow statement is a financial statement that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.
The cash flow statement is focused on cash accounting, whereas there are two forms of accounting, accrual and cash. Most public companies use accrual accounting, which means the income statement is not the same as the company's cash position.
For example, a company may sell product and extend its customers credit. It still recognizes that sale as revenue, but the company may not receive cash until a later date. The company is earning a profit on the income statement and will pay income taxes on it, but the business may bring in more or less cash than the sales or income figures. Even profitable companies can fail to adequately manage cash flow, which is why the cash flow statement is a critical tool for companies, analysts and investors. The cash flow statement is broken down into three different business activities: operations, investing and financing.
This question is part of UPSC exam. View all B Com courses
|
|
Explore Courses for B Com exam
|
|
Similar B Com Doubts
Needed a Document for Cash flow statment? Related: Cash Flow Statement ( Indirect Method ) AS 3 | Class 12th | CA Intermediate | Accounts
Question Description
Needed a Document for Cash flow statment? Related: Cash Flow Statement ( Indirect Method ) AS 3 | Class 12th | CA Intermediate | Accounts for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Needed a Document for Cash flow statment? Related: Cash Flow Statement ( Indirect Method ) AS 3 | Class 12th | CA Intermediate | Accounts covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Needed a Document for Cash flow statment? Related: Cash Flow Statement ( Indirect Method ) AS 3 | Class 12th | CA Intermediate | Accounts.
Needed a Document for Cash flow statment? Related: Cash Flow Statement ( Indirect Method ) AS 3 | Class 12th | CA Intermediate | Accounts for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Needed a Document for Cash flow statment? Related: Cash Flow Statement ( Indirect Method ) AS 3 | Class 12th | CA Intermediate | Accounts covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Needed a Document for Cash flow statment? Related: Cash Flow Statement ( Indirect Method ) AS 3 | Class 12th | CA Intermediate | Accounts.
Solutions for Needed a Document for Cash flow statment? Related: Cash Flow Statement ( Indirect Method ) AS 3 | Class 12th | CA Intermediate | Accounts in English & in Hindi are available as part of our courses for B Com.
Download more important topics, notes, lectures and mock test series for B Com Exam by signing up for free.
Here you can find the meaning of Needed a Document for Cash flow statment? Related: Cash Flow Statement ( Indirect Method ) AS 3 | Class 12th | CA Intermediate | Accounts defined & explained in the simplest way possible. Besides giving the explanation of
Needed a Document for Cash flow statment? Related: Cash Flow Statement ( Indirect Method ) AS 3 | Class 12th | CA Intermediate | Accounts, a detailed solution for Needed a Document for Cash flow statment? Related: Cash Flow Statement ( Indirect Method ) AS 3 | Class 12th | CA Intermediate | Accounts has been provided alongside types of Needed a Document for Cash flow statment? Related: Cash Flow Statement ( Indirect Method ) AS 3 | Class 12th | CA Intermediate | Accounts theory, EduRev gives you an
ample number of questions to practice Needed a Document for Cash flow statment? Related: Cash Flow Statement ( Indirect Method ) AS 3 | Class 12th | CA Intermediate | Accounts tests, examples and also practice B Com tests.
|
|
Explore Courses for B Com exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup