Tuesday, June 17, 2014

CASH FLOW STATEMENT INTRO

CASH FLOW IS A STATEMENT REPRESENT ACTUAL INCOMING AND OUTGOING OF CASH ( WHERE THE MONEY COMES FROM AND WHERE ITS GOES ) IN A FIRM FOR PARTICULAR PERIOD ( MONTHLY - QUARTERLY - YEARLY ) 

CASH STATEMENT DETERMINE THE AMOUNT, TIMING AND PREDICTABILITY OF CASH INFLOW AND CASH OUTFLOW AND ON THAT BASIS WE CAN DO BUDGETING AND BUSINESS PLANNING.

THERE ARE THREE MAJOR DATE PRESENTED IN IT :

1 - OPERATING ACTIVITIES : SALES OF GOOD OR SERVICES

2 - INVESTING ACTIVITIES : SALES OR PURCHASES OF AN ASSET

3 - FINANCING ACTIVITIES : BORROWING OR SALES OF COMMON STOCKS

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