Sources and uses of cash, Cost Accounting

There are different activities undertaken through a business that prove to be either source or use of cash. These can be categorizes under three broad categories that are: investing activities, Financing activities and operating activities. A brief discussion of all of these categories is given below:

Operating  activities  comprise  cash  inflows  related  with  sales,  dividends  and interest  received  and  the  cash  outflows  related  with  operating  expenses comprising payments to  suppliers of  goods or  services, payments in the directions of wages, taxes and interest, etc. Increase or decrease in current assets, for illustration: receivables, inventory and also increase or decrease in current liabilities, for illustration: accounts payable, interest payable, wages payable, taxes payable also reflect operating activities.

Investing activities considered as to long life assets as land and building, plant and machinery and investments. Acquisitions of these assets involve cash outflow while their disposal means inflow of cash.

Financing activities encompass modifications in equity and preference capital, long term loans, debentures and same items. Issuance of equity, debenture and preference capital and also rising of long term loans imply cash inflow. Retirement of capital, redemption of debentures, bonus payments to shareholders, amortisation of long-term loans, conversely are related with cash outflow.

Posted Date: 4/9/2013 1:52:48 AM | Location : United States







Related Discussions:- Sources and uses of cash, Assignment Help, Ask Question on Sources and uses of cash, Get Answer, Expert's Help, Sources and uses of cash Discussions

Write discussion on Sources and uses of cash
Your posts are moderated
Related Questions
tHE FIRST SECTION ASSIGEMTN ANSWER FOR HAMPSHIR COMPANY DECISIONS

What are the benefitss and drawbacks of standard costing?

Question The statements of comprehensive income for three entities for the year ended 30 September 2009 are presented below: SOT PB UV

diff between cost estimation and cost accounting

Direct Labour Rate Variance It is the difference among the actual direct labour rate and the standard direct labour rate for the total hours worked. Utilizing an equation,

1.Assume that Abel business corporation is purchasing new equipment, for 350,000$ at the beginning of 2014. Assume that Abel business corporation is in the 30% corporate tax bracke

what are the advantages and disadvantages of marginal costs plus a fixed lump-sum fee?

creating a decision treeplan.

scope and limitations of product costing

Average costing method has the following main advantages: 1.It is a realistic costing method useful to management in analyzing operating results and appraising future production