DNČEPTS" 13 Describe the statement of cash flo Classify cash inflows and outflows or noncash financing and investing Distinguish between cash and cas Prepare the statement of cash flow Prepare the statement of cash flow Distinguish between the direct and Evaluate the results of the statem
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Statement of Cash flow is one of the main financial statement which reports Cash inflow and Cash outflow during given time interval. Money coming in to business is Cash inflow and money going out of business is cash outflow. one can prepare Statement of Cash flow for a week, month, quarterly or yearly.
It is also important to note that Statement of cash flow is a Cash basis statement and Income statement and balance sheet are accrual basis statement, In fact whole accounting system is accrual based and so reports events as and when due. So This is the only statement which focuses on the actual cash aspect of the business.
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