ICSE Class 12 Accounts | 4. Cash Flow by Abraham | Learn Smarter
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4. Cash Flow

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Sections

  • 1

    Introduction

    The Cash Flow Statement is a vital financial statement outlining the cash inflows and outflows in a business over a set period.

    Learning Practice

  • 2

    Objectives Of Preparing Cash Flow Statement

    The Cash Flow Statement's objectives include assessing cash generation, evaluating financial responsibilities, and aiding in financial decision-making.

    Learning Practice

  • 3

    Components Of Cash Flow Statement

    The components of a Cash Flow Statement include cash flows from operating, investing, and financing activities, which provide insights into a company's cash generation and utilization.

    Learning Practice

  • 3.1

    Cash Flow From Operating Activities

    This section focuses on the Cash Flow from Operating Activities, outlining its significance in the Cash Flow Statement and the methods used to calculate it.

    Learning Practice

  • 3.2

    Cash Flow From Investing Activities

    This section delves into cash flows arising from investments in long-term assets, providing insights into a company’s investment activities.

    Learning Practice

  • 3.3

    Cash Flow From Financing Activities

    Cash Flow from Financing Activities focuses on cash flows related to owners' capital and loans.

    Learning Practice

  • 4

    Format Of Cash Flow Statement (As Per As-3)

    The Cash Flow Statement is essential for tracking cash inflows and outflows, offering insights into a company's liquidity and operational efficacy.

    Learning Practice

  • 5

    Methods Of Calculating Operating Cash Flow

    This section outlines the indirect method used to calculate the operating cash flow of a business.

    Learning Practice

  • 5.1

    Indirect Method (Commonly Used)

    The Indirect Method for calculating cash flow from operating activities adjusts net profit with various non-cash and working capital changes to determine actual cash flow.

    Learning Practice

  • 6

    Key Adjustments In Cash Flow Statement

    This section explains the key adjustments made in a cash flow statement and their effects on cash flow calculations.

    Learning Practice

  • 7

    Solved Example

    The section presents a solved example that demonstrates the calculation of Net Cash Flow from Operating Activities based on specific inputs.

    Learning Practice

  • 8

    Common Questions In Exams

    This section outlines common exam questions related to cash flow statements, focusing on key definitions, objectives, and formats.

    Learning Practice

  • 9

    Summary

    The Cash Flow Statement is a key financial document that outlines the cash inflows and outflows of a business, crucial for assessing its overall financial health and liquidity.

    Learning Practice

References

12 accounts ch4.pdf

Class Notes

Memorization

Revision Tests