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Questions
Give the meaning of ‘Cash Flow statement.’
What is meant by ‘Cash flow Statements’?
Short Answer
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Solution 1
The statement that records the inflows and outflows of cash and cash equivalents during a particular period from the business operating activities, investing activities and financing activities is called the ‘Cash Flow Statement.’
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Solution 2
A Cash Flow Statement shows how the amount of cash and cash substitutes coming in and going out during a certain time period. Short-term assets that are very easy to turn into cash are called cash equivalents. A Cash Flow Statement shows:
- Net cash flows from Operating Activities,
- Net cash flows from Investing Activities,
- Net cash flows from Financing Activities,
- Net changes in Cash and Cash Equivalents.
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