Archive about 'Cash Flow Statement'

Cash

Salient points:

1.0 Cash is the standard for measurement and accounting and requires special procedures to assure that proper physical and accounting control is maintained. Temporarily available excess cash is often invested to generate revenue from an otherwise unproductive assets

2.0 Whether it should be included as cash is often based on whether the item would be […]

Answer Paper On CF No1:Statement of Cash Flow Classification

Answer to Test Paper CF No. 1

Test On Statement of Cash Flow Classification

 

(1)

Operating activities

Payment to suppliers of inventory

(2)

Financing activities

Payment of cash dividends to shareholders

(3)

Investing activities

Proceeds from the disposal of plant and equipment

(4)

Operating activities

Receipt of interest on a note receivable

(5)

Investing activities

Sale of land for cash

(6)

Investing activities

Purchase of plant and equipment

(7)

Investing activities

Dividend received from associate

(8)

Investing activities

Expenses relating […]

What Is In The Cash Flow Statements?

In my earlier article, I have explained the needs to understand the Cash Flow Statements.

SO WHAT IS IN A CASH FLOW STATEMENT?

Basically comprise the following:

Closing Cash Balance  (a)

Opening Cash Balance (b)

Net Change of Cash Balance ( c ) = (a-b)
( Cash balance also includes cash equivalent(refer to my earlier article on this)

This Net Change of […]

The Importance Of Understanding The Cash Flow Statements

Cash Flow Statements form an integral part of the financial statements. However, many readers tend to under-emphasize this statement, believing that the Income Statement and the Balance Sheet holds the key to their answers
This article is to briefly explain the reasons for the needs to understand the importance of the Cash flow statements.

THE IMPORTANCE OF […]

Managing Cash Flows: Steps To Improve Cash Flows

It is critical that a business needs to monitor its cash flow very carefully. Below, are some suggested steps to attempt to improve the cash flow of a business.

STEPS TO IMPROVE THE COMPANY’S CASH FLOWS:

Improving Pricing policy
This can then improve the gross profit margin of the business and assuming constant cost hence when the money […]

Managing Cash Flows : What is Cash Flow & Why Is It So Important

WHY CASH FLOW IS SO IMPORTANT?

Cash flow is the LIFE-BLOOD of a business.

A business might be profitable but not necessarily liquid.

For a growing business, for expansion purposes, cash is especially require to pay for salaries ( higher head count), more rental or storage space, payments to suppliers whether for raw materials or other types of […]