Introduction: A statement of cash flow is part of the annual financial statements that are presented by an entity along with the statement of financial position, statement of comprehensive income and statement of changes in equity. It represents the net cash flow (cash generated less cash spent) of an entity during a specific period (i.e. […]
How do Deferred Income Taxes present in Statement of Cash Flow? Read More »
Meaning of Accounts Receivables Account receivables are the amount of money due to enterprise for goods or services delivered to customers but not yet paid by them. It refers to the outstanding invoices the enterprise has or the customers owe the enterprise. It represents a line of credit extended by enterprise and normally has terms
How does the account receivable present in the cash flow statement? Read More »
Meaning Impairment expense is an accounting expense recognize on the basis of which a permanent reduction in assets value is justified in the books of account compare the recoverable amount of the assets at the end of the reporting date as per certain impairment conditions or factors. The assets of the enterprise are tested for
How do the impairment expenses present in the statement of cash flow? Read More »
Meaning of Depreciation Depreciation of an asset begins when it is available for use i.e. when it is in the location and condition necessary for it to be capable of operating in the manner intended by the management. Depreciation is allocated so as to charge fair proportion of depreciable amount in each accounting period during
How do depreciation expenses present in Statement of cash flow? Read More »
In accrual-based accounting, all the credit and cash transactions are recorded collectively. The financial statements of the business entity also represent the financial data corresponding to credit and cash transactions. It is an accurate method of preparing financial statements because it shows the actual income the company has earned regardless of how much cash payments
How to Prepare a Statement of Cash Flows Using the Indirect Method Read More »
Overview: The direct method of developing the cash flow statement lists operational cash receipts and cash payments within the operational activities section. In this section, any interest paid on outstanding debt is also reported, and all income taxes are paid. Using the direct technique, cash receipts minus cash disbursements are used, and the final figure
Statement of Cash Flow: Direct Method (Guidance) Read More »
Overview: You must have heard that, albeit profitable, the businesses could not go on as they just run out of cash. This may sound ridiculous at first sight, but managing cash flow effectively is important for the business’s survival. It is important for all levels of the organization, either small or large. And believe it
The Main 4 Advantages and 4 Limitations of Cash Flow Statement You Should Know Read More »
In financial accounting, a cash flow statement, also known as the statement of cash flows, is a financial statement that summarizes the amount of all cash inflows and outflows of the company. The cash flow statement is a mandatory part of a company’s financial reports since 1987. The Statement of Cash Flows is one of
What is a Cash Flow Statement? What Are The Three Sections? Read More »
Overview: Income statement presents the results of the company’s operations for a specified accounting period. Accounting periods may be quarterly or yearly as required by laws and regulations. Income statement examines the income and expenses in a particular accounting period and finally arriving at net profit. The financial performance of the business in terms of
What Are the Limitation (Disadvantages) of Income Statement? Read More »
Overview: An income statement presents the results of the company’s financial operations for a specified accounting period. Accounting periods may be quarterly or yearly as required by laws and regulations. This statement records the income and expenses in a particular accounting period and finally arrives at net profit. This statement records the income and expenses
What are the Advantages of Income Statement? 6 Advantages You Should Know Read More »