Question

Describe the Cash Flow Statement format.

Describe the Cash Flow Statement format.

Homework Answers

Answer #1

Cash flow staement show the movement of cash during the period. It is divided into three activity operating, investing and financing activity.

Cash from operating activity show the cash from primary business of the entity. Like cash received from customer.

Cash from investing activity shows the cash flow from the investment made by the company. Like interest on investment.

Cash from financing activity show the cash flow from sources from where company is financed. Like loan taken by the company, dividend recieved by the company.

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