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Statement of Cash Flows
A formal statement of the cash received and disbursed through an organization. The statement of cash flows is separate into three sections that are investing activities (usually both a source and a use of cash), operating activities (usually a source of cash), and financing activities (usually a source and use of cash). When cash is paid or received for more than one activity it is allocated to that activity which is the prime motivation for the cash flow. For example there are many organizations which consider cash spent on new equipment to be an investment activity rather than an operating activity.
Explain how to compute the overall balance and discuss its significance. The overall BOP is defined by computing the cumulative balance of payments involving the current account,
Explain official reserve assets and its major components. Answer: Official reserve assets are those financial assets which can be employed as international means of payments.
capital structure
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