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 »