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Explain the use of the following accounting books a. Cashflow statement b. Statement of financial position...

Explain the use of the following accounting books
a. Cashflow statement
b. Statement of financial position
c. Invoice book
Business   Accounting   
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Answer #1

a. Cashflow statement: Cashflow statement is used to know the flow of cash during the year. This is also helpful to know the source of cash flow Example of source of cash flow are : Operating activity, investing activity and financial activity.

b. Statement of financial position: Statement of financial position is also known as Balance sheet. Statement of financial position tell as about the position of Assets and Liabilities on a specific date.

c. Invoice book: Invoice book is used to record the initial records of sales entry. It include the amount of sale, quantity and description etc.

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