English

The analysis of the actual movement of money inflow and outflow in an organisation is called ______ analysis.

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Question

The analysis of the actual movement of money inflow and outflow in an organisation is called ______ analysis.

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Solution

The analysis of the actual movement of money inflow and outflow in an organisation is called cash flow analysis.

Explanation:

In financial statement analysis, the analysis of the actual movement of money inflow and outflow in an organisation is called Cash Flow analysis. This process evaluates how an enterprise generates and spends its cash over a specific period, categorised across operating, investing, and financing activities.
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Chapter 4: Analysis of Financial Statements - Intext Questions [Page 175]

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NCERT Accountancy Company Accounts and Analysis of Financial Statements [English] Class 12
Chapter 4 Analysis of Financial Statements
Intext Questions | Q 5. | Page 175
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