¶ … technical information on the statement of cash flow, including what the main sections of a cash flow statement are, how to create each of them and what are the main elements that need to be gathered for a successful cash flow statement. The general format of a cash flow statement was discussed in the beginning so as to give an overview of what the CFS should usually contain.
One of the main issues that the document helped clarify was how the activities of a company can be included in one of the three categories mentioned (operating, investing or financing). In each case, the final figure on each of these CFS categories is important to reveal how the company is performing in terms of each specific operation.
Finally, the document referred to the several different methods that can be used to create a cash flow statement, including the advantages and disadvantages in each case. Additionally, one could learn that what method to use in particular situations, given the fact that each is adapted to a necessity. The indirect method, for example is preferred because of its simplicity.
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