Class 12 accountancy cash flow statement notes
Cash flow statement. ... Short & Easy Notes for B oard Exam #1. What do you mean by cash flow statement? What ere its objectives? => It is a statement which shows inflow of cash and outflow of cash. It is also shows the change in cash position from one accounting period to another. The main objectives to prepare cash flow statement are as follow:- i. It is prepared to highlight cash generated from all activity. ii. It is prepared to indicate the difference between total inflow and total outflow. iii. It disclose the reason for low cash balance in heavy operating profit. iv. It helps in Planning the investment of surplus cash. v. It provides information for planning the short-term needs of the firm. vi. It helps in dividend decision. vii. It help to ascertain the liquidity in better way. #2. Write the importance of cash flow statement? => Following are its importance; i. It is an essential tool of financial anal...