Explain about statement of cash flows, Accounting Basics

Assignment Help:

Q. Explain about statement of cash flows?

Retained earnings usually consist of the accumulated net income of the corporation minus dividends distributed to stockholders. We examine these items later in the text. Currently merely note that the balance sheet heading comprise the name of the organization and the title and date of the statement. Notice as well that the dollar amount of the total assets is equal to the claims on (or interest in) those assets. The balance sheet demonstrates these claims under the heading Liabilities and Stockholders' Equity. Administration is interested in the cash inflows to the company and the cash outflows from the company for the reason that these determine the company's cash it has available to pay its bills when due. The statement of cash flows demonstrates the cash inflows and cash outflows from investing, operating and financing activities. Operating activities generally comprise the cash effects of transactions and other events that enter into the determination of net income. Investing activities usually include business transactions involving the acquisition or disposal of long-term assets such like buildings, land and equipment. Financing activities usually include the cash effects of transactions and other events involving creditors and owners stockholders.

It explains the statement of cash flows in detail. Our principle here is to merely introduce this important financial statement. Usually a firm prepares a statement of cash flows for the same time period as the income statement. At this end in the course you require to understand what a statement of cash flows is rather than how to prepare it.


Related Discussions:- Explain about statement of cash flows

What is acounts receivable ledger, What is ACOUNTS RECEIVABLE LEDGER Bu...

What is ACOUNTS RECEIVABLE LEDGER Businesses have several customers and individual businesses aren't assigned an account number they are just in alphabetical order. Accounts

Explain about merchandise inventory, Q. Explain about Merchandise inventory...

Q. Explain about Merchandise inventory? Merchandise inventory is the quantity of goods assumed by a merchandising company for resale to customers. Merchandising companies verif

What is fixed cost, Q. What is Fixed cost? Fixed cost -- a cost that do...

Q. What is Fixed cost? Fixed cost -- a cost that doesn't change as sales volume changes (in the short run.) Fixedcosts generally include such items as rent, interest, depreciat

Show steps in recording business transactions, Steps in recording business ...

Steps in recording business transactions Look at Exhibit 5 to observe the steps in recording and posting the effects of a business transaction. Note that a source document offe

Illustrate a simple accounting system, Q. Illustrate a simple accounting sy...

Q. Illustrate a simple accounting system? James Stevens was captivating an accounting course at State University. as well he was helping companies find accounting systems that

What is current ratio in terms of accounting, Q. What is current ratio in t...

Q. What is current ratio in terms of accounting? The current ratio specifies the short-term debt-paying ability of a company. To find the current ratio we divide current assets

Debits and Credits, When does something that is a debit becomes a credit?

When does something that is a debit becomes a credit?

Lifo under periodic inventory procedure, Q. LIFO under periodic inventory p...

Q. LIFO under periodic inventory procedure? The LIFO (last-in, firstout) method of inventory costing presume that the costs of the most recent purchases are the first costs cha

Accounts for managers, 1. From the following information, prepare a Balance...

1. From the following information, prepare a Balance Sheet showing the workings: 1. Working Capital ` 75,000 2. Reserves and Surplus ` 1,00,000 3. Bank Overdraft ` 60,000 4. Curren

Cash flow analysis, Cash  Flow Analysis:   As per the Institute of Cost...

Cash  Flow Analysis:   As per the Institute of Cost and Works Accountants of India (AICWAI), a Cash Flow Statement is a declaration setting out the flow of cash under different

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd