Limitations of funds flow statement, Accounting Basics

Limitations of Funds Flow Statement: despite the a variety of uses of the announcement, it has convinced problems also.  They consist of the subsequent

i) It cannot substitute either an income statement or a Balance Sheet as it does not give complete information

ii) It is organized from the information enclosed in the financial statements and per se the accuracy of the information is uncertain

iii)  This declaration disregards the changes in the working capital items and thus fails to throw light on the financial position of the fear

iv)   It does not offer for uninterrupted changes

Posted Date: 10/15/2012 6:24:47 AM | Location : United States







Related Discussions:- Limitations of funds flow statement, Assignment Help, Ask Question on Limitations of funds flow statement, Get Answer, Expert's Help, Limitations of funds flow statement Discussions

Write discussion on Limitations of funds flow statement
Your posts are moderated
Related Questions
Q. Database management system - accounting perspective? A database management system stores related data-such like monthly sales data products, salespersons, customers and sale

The Olympic Company has an accounts receivable balance at December 31, 2010 of $159,548.00.  The existing balance in the Allowance for Uncollectible Accounts was a credit of $2,563

Q. What is Purchase Discounts account? The buyer records the purchase discount merely when the invoice is paid within the discount period and the discount is taken. The Purchas

Q. Explain Accounts payable? Accounts payable are amounts owed to suppliers meant for goods or services purchased on credit. Accounts payable are usually due in 30 or 60 days a

Components of Profit and Loss Account The Profit & Loss Account intend to check profit. It has three parts. 1) The Trading Account: These account the money in (revenue)

Treatment of Provision for Taxation and Proposed Dividend: As preparing the Funds Flow Analysis, the treatment of condition for Taxation and planned Dividend is very significa

The capital structure of Wild West Inc. is as follows: -            Debts: $5,000,000 (face value) bonds with coupon rate at 8.00% and current price at par -

How to prepare the worksheet  Look carefully at worksheet in the text. Remember that it is an informal working paper used to prepare financial statements. Place transparenci

Q. Detailed steps for completing the work sheet ? Accountants use these preliminary steps in preparing the work sheet. The following segments describe the detailed steps for com

Your individual coursework portfolio addresses the following learning outcomes: ? Discuss the corporate governance issues and the duty of care of the directors of limited companies