cash flow statement financing activities
The activities include issuing and selling stock paying cash dividends and adding loans. A cash flow statement is typically divided into the following sections to distinguish among different categories of cash flow.
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In financial accounting a cash flow statement also known as statement of cash flows is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents and breaks the analysis down to operating investing and financing activitiesEssentially the cash flow statement is concerned with the flow of cash in and out of.
. Cash flow statement is to provide useful information about cash flows inflows and outflows of an enterprise during a particular period under various heads ie operating activities investing activities and financing activities. Cash flows in this section will follow a companys operating cycle for an accounting period and include things like sales receipts merchandise purchases salaries paid and various operating. Ii The Accounting period for the Cash Flow Statement is the same for which Profit and Loss Account and Balance Sheet are prepared.
It focuses on how the business raises capital and pays back its investors. Iii Cash flow items are as a Cash flow from operating activities b Cash flow from investing activities c Cash flow from financing activities. In the cash flow statement financing activities refer to the flow of cash between a business and its owners and creditors.
A positive number on the cash flow statement indicates.
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