The document discusses the statement of cash flows, including its meaning, classification, and advantages. A cash flow statement shows the inflows and outflows of cash from operating, investing, and financing activities over a period of time. Operating activities include cash from sales and payments for expenses. Investing activities involve the purchase and sale of long-term assets. Financing activities include equity contributions and repayment of debt. The cash flow statement is useful for planning, control, and short-term financial decision making by providing insight into a company's liquidity and cash generation.
Meaning
Objective or uses
Limitations of Cash-flow statement
Difference between cash-flow statement & cash budget
Procedures for preparing Cash-Flow Statement
Some terms are used in preparing cash-flow statement
Classification of cash flows
Some special items
Classification of business activities showing cash inflows & cash outflows
Format of cash flow statement
Illustration
Exercise
The Cash Flow Statement translates earnings in the Income Statement into cash inflows. Explained in detail above as a part of the topic “Financial accounting”, is brought to you by Welingkar’s Distance Learning Division.
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The golden rules in accounting or rules of debit and creditkaslinsas
Journal Entries cannot be recorded without some rules. The rules which are used to record a journal entry are called Golden rules of Accounting. It means debit the person who receives something from the business
A presentation about the Cash Flow Statement ,whole chapter is covered in the slides .one can easily understand the concept of cash flow statement
and a video is also there but link went missing so please search it on youtube by the name of "cash flow statement in 3-min" a beautiful video to understand the basic concept of cash flow statement.In the end a numerical has solved for the better understanding ,which let u fetch marks in your examinations.
Financial accounting Meaning . This is useful for, BCOM,MCOM,CA,CS,CMA STUDENTSBibek Prajapati
Financial accounting is a specialized branch of accounting that keeps track of a company's financial transactions. Using standardized guidelines, the transactions are recorded, summarized, and presented in a financial report or financial statement such as an income statement or a balance sheet.
This is useful for, BCOM,MCOM,CA,CS,CMA STUDENTS
Essential Components of Financial Statement Invensis
A financial statement is an important tool which gives crystal clear information about a company’s financial situation and is helpful in making sound business decisions. Find out the essential components of financial statement and how outsourcing Finance and Accounting services to Invensis Technologies can improve the fiscal aspect of your company.
Invensis Technologies (http://www.invensis.net) is a leading IT & Business Process Outsourcing Firm based in Bangalore, India with more than 15 years of experience. Our customized End-to-End Finance and Accounting(F&A) Outsourcing Services (http://www.invensis.net/outsource-finance-accounting-bpo-services.php) include Tax Preparation Services, Accounting and Bookkeeping, Financial Analysis reporting, Record to Report Services and Payroll Processing Services.
To find out more about our services and benefits of partnering with us, please contact us at sales{at}invensis{dot}net or you can call us from US +1(302)-261-9036 ; UK +44 203 411 0183 ; AUS +61 3 8820 5183 ; IND +91 80 41155233
Accounting standards are authoritative standards for financial reporting and are the primary source of generally accepted accounting principles (GAAP). Accounting standards specify how transactions and other events are to be recognized, measured, presented and disclosed in financial statements.
The Indian Accounting Standards were revised in September 2016.
This presentation tells about the AS 7 on Cash Flow Statement.
Meaning
Objective or uses
Limitations of Cash-flow statement
Difference between cash-flow statement & cash budget
Procedures for preparing Cash-Flow Statement
Some terms are used in preparing cash-flow statement
Classification of cash flows
Some special items
Classification of business activities showing cash inflows & cash outflows
Format of cash flow statement
Illustration
Exercise
The Cash Flow Statement translates earnings in the Income Statement into cash inflows. Explained in detail above as a part of the topic “Financial accounting”, is brought to you by Welingkar’s Distance Learning Division.
For more such innovative content on management studies, join WeSchool PGDM-DLP Program: http://bit.ly/SlideshareFaccounting
Join us on Facebook: http://www.facebook.com/welearnindia
Follow us on Twitter: https://twitter.com/WeLearnIndia
Read our latest blog at: http://welearnindia.wordpress.com
Subscribe to our Slideshare Channel: http://www.slideshare.net/welingkarDLP
The golden rules in accounting or rules of debit and creditkaslinsas
Journal Entries cannot be recorded without some rules. The rules which are used to record a journal entry are called Golden rules of Accounting. It means debit the person who receives something from the business
A presentation about the Cash Flow Statement ,whole chapter is covered in the slides .one can easily understand the concept of cash flow statement
and a video is also there but link went missing so please search it on youtube by the name of "cash flow statement in 3-min" a beautiful video to understand the basic concept of cash flow statement.In the end a numerical has solved for the better understanding ,which let u fetch marks in your examinations.
Financial accounting Meaning . This is useful for, BCOM,MCOM,CA,CS,CMA STUDENTSBibek Prajapati
Financial accounting is a specialized branch of accounting that keeps track of a company's financial transactions. Using standardized guidelines, the transactions are recorded, summarized, and presented in a financial report or financial statement such as an income statement or a balance sheet.
This is useful for, BCOM,MCOM,CA,CS,CMA STUDENTS
Essential Components of Financial Statement Invensis
A financial statement is an important tool which gives crystal clear information about a company’s financial situation and is helpful in making sound business decisions. Find out the essential components of financial statement and how outsourcing Finance and Accounting services to Invensis Technologies can improve the fiscal aspect of your company.
Invensis Technologies (http://www.invensis.net) is a leading IT & Business Process Outsourcing Firm based in Bangalore, India with more than 15 years of experience. Our customized End-to-End Finance and Accounting(F&A) Outsourcing Services (http://www.invensis.net/outsource-finance-accounting-bpo-services.php) include Tax Preparation Services, Accounting and Bookkeeping, Financial Analysis reporting, Record to Report Services and Payroll Processing Services.
To find out more about our services and benefits of partnering with us, please contact us at sales{at}invensis{dot}net or you can call us from US +1(302)-261-9036 ; UK +44 203 411 0183 ; AUS +61 3 8820 5183 ; IND +91 80 41155233
Accounting standards are authoritative standards for financial reporting and are the primary source of generally accepted accounting principles (GAAP). Accounting standards specify how transactions and other events are to be recognized, measured, presented and disclosed in financial statements.
The Indian Accounting Standards were revised in September 2016.
This presentation tells about the AS 7 on Cash Flow Statement.
Accounting Standard-3 Cash Flow Statement by Nithin RajChinnu Raj
Are you Searching for the Complete Information on AS-3 (Cash Flow Statement)??You have come Correctly..Here is the Brief Description on Cash Flow Statement which enables the Students to gain the complete knowledge on AS-3.
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Cash Flow Statement is a basic concept which every young manager must learn. This presentation excellently explains what you should know about this topic!
1.1 How Is Cash Flow to Be MonitoredBeyond just looking at .docxpaynetawnya
1.1
How Is Cash Flow to Be Monitored?
Beyond just looking at cash on the balance sheet, how is one to assess a company's cash, cash flow, and cash flow prospects? For many years, the accounting profession only required presentation of the balance sheet, income statement, and a statement of retained earnings (or stockholders' equity). In the 1960s, following several prominent and seemingly sudden business failures due to poor cash flow, the profession determined to require a fourth financial statement reporting on funds flow. The specific content and format evolved. In the 1990s, the profession began to require the current format for a statement of cash flows. This statement has become a well-established component of required reporting for corporate entities. The objective of the statement is to provide information that is helpful in assessing the amounts, timing, and uncertainty of an organization's cash inflows and outflows. Accordingly, the statement of cash flows divides cash flow information into key categories related to operating activities, investing activities, and financing activities. The statement also provides information about other investing and financing activities that do not directly entail the generation or consumption of cash. Thus, the statement also provides a key source of insight about a company's overall investing and financing actions.
Operating Activities
In a sweeping generalization, think of the operating activities of a business as the routine transactions and events that enter into the determination of ongoing income. Thus, the operating activities section of the statement of cash flows is a bit like a cash basis income statement. But, as you will soon see from the following details, this generalization should be used as a frame of reference only. Specifically, cash inflows from operating activities consist of receipts from customers for providing goods and services, the cash amount of interest earnings, and cash dividends received. Cash outflows relate to payments for inventory purchases, salaries, wages, taxes, interest, and other such business expenses. However, another way to view "operating" cash flows is to include anything that is not an "investing" or "financing" cash flow. This means that any cash flows that do not clearly fall into the categories of investing activities or financing activities are regarded as related to operations. Because this view casts the operating activities section as a "default" grouping, it is also necessary to understand the specifics of each of the next two categories.
Investing Activities
Investing activities relate to acquiring and disposing of longer term investments in stocks and debt issued by others, as well as buying and selling items of property, plant, and equipment. Investing cash inflows result when a company receives the proceeds from selling the stock and debt of others (unless such investment was initially acquired for "trading" rather than longer term investme ...
4. Statement of Cash Flows in
Perspective
Why the statement of cash flows is needed in
addition to the balance sheet and the profit and
loss account?
To provide relevant information about the cash
receipts and payments of an enterprise
evaluate an enterprise’s
liquidity
financial flexibility
profitability
risk
Provide feedback about previous assessments
5. MEANING
Cash – cash means all cash + cash equitable +
marketable securities + bank balance
Flow – flows means flow of cash from business to
economy and economy to business that is
cash inflows and cash outflows.
Statement – statement is a performance prescribed
by Chartered Accountant Act,1948
Thus, Cash Flow Statement is a statement of
inflows and outflows of cash and cash equivalents in
an enterprise during a specified period of time.
6. Continue…
A Cash Flow Statement summarizes the causes of
changes in cash position of a business enterprise
between dates of two balance sheets.
A statement a Cash Flow reveals the movements of
cash of a business enterprise for the given accounting
period indicating specifically how the cash was
generated.
Statement of Cash Flow is required for short range
financial planning.
7. CLASSIFICATION
1.
2.
3.
As per Accounting Standard-3, the changes
resulting in cash inflows and cash outflows
arise on account of three types of activities.
Operating activities
Investing activities
Financing activities
8. 1. CASH FLOW FROM
OPERATING ACTIVITIES
Operating Activities are the principle
revenue producing activities of the
enterprise and other activities that are
not investing and financing activities.
Hence, these are the results of those
transaction and events that determines
the net profit or loss.
9. Cash Flows from Operating
Activities
Payments to
Suppliers and
Employees
for Materials
and Services
Receipts from
Customers
for Sales of
Goods and
Services
Operating
Activities
Payments to
Governments
for Taxes and
Duties
10. Determining Net Cash Flow from
Operating Activities: Direct
Method
Cash received from customers
Cash paid to suppliers and employees
Duties & taxes paid
11. 2. CASH FLOW FROM INVESTING
ACTIVITIES
Investing activities include the purchase
and disposal of long-term assets and
other investments not included in cash
equivalents.
The separate disclosure of Cash Flow
arising from investing activities is
important.
12. Cash Flows from Investing Activities
R eceip ts from
S ales of
Fixed A ssets
R eceip ts from
S ales of
In vestm en ts
an d from
C ollection s of
Loan s
R eceip ts from
In terest an d
D ivid en d s on
Loan s an d
In vestm en ts
P aym en ts for
P u rch ase of
Fixed A ssets
In vestin g
A ctivities
P aym en ts for
P u rch ases of
In vestm en ts
an d for
M ak in g of
Loan s
13. Determining Cash Flow from Investing
Activities
1. Plant and machinery
purchase
Disposal
2. Investments
Purchases
Sales
3. Interest received
4. Dividend received
14. 3. CASH FLOW FROM FINANCING
ACTIVITIES
The separate disclosure of Cash Flows
arising from financing activities is
important because it is useful in
predicting funds to the enterprise.
Financing Activities are activities that
result in changes in the size and
composition of the owner capital and
borrowings of the enterprise.
15. Cash Flows from Financing Activities
P aym en ts for
D ivid en d s on
S h are C ap ital
R eceip ts from
Issu an ce of
S h are C ap ital
R eceip ts from
Issu an ce of
D eb en tu res
R eceip ts from
O th er Lon gterm
B orrow in gs
Fin an cin g
A ctivities
P aym en ts for
P rin cip al on
D eb en tu res
an d O th er
B orrow in gs
P aym en ts for
In terest on
D eb en tu res
an d O th er
B orrow in gs
16. Determining Cash Flow from Financing
Activities
1. Equity share capital
Issuance
Buy-back
2. Dividends paid
3. Secured loan and unsecured loan
Issuance
Repayment and redemption
4.Interest paid
17. Advantages of Cash Flow Statement
Helpful in planning and co-ordination.
Helpful in control.
Useful in internal financial management.
Knowledge of change in cash position.
Helpful in short-term financial decisions.