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3 Statement of Cash flows has operating cash flows which are cash flows that they generate and is a proxy to the net income. Investing cash flows are in relation to the investing activities and includes capex. Financing cash flows cashflows shows cash flows from providers of capital such as shareholders and borrowings. Companies can manipulate profits but manipulation of cash flows is difficult.
However in some industries, the cash flows statement is absolutely of no use. In the banking industry, a bank can simply increase operating cash flows from more deposits take which is considered an operating cash flows,
Option3 is the right answer.
Statement of cash flow is having three sections as follows:-
1, Cash flow (used in) / from operating activities.
2, Cash flow (used in) / from Investing activities.
3, Cash flow (used in) / from financing activities.
Cash flow statement. *************************
option3 is the answer Cash flow statement
the answer is cash flow statement
The Correct Answer is Statement of Cash Flows.
Thanks
Of course, Cash Flow Statement....Cash Inflow & Outflow takes place only theses three possible ways either operating or investing or financing.
Many a times I think that out of these three, as I think, cash inflow from operating activities is of prime importance as later this can be converted/outflow of cash in investing or financing activities. Interesting thing is that if business generates fund through selling some property/ investment ( Investing activities/ Cash Inflow) or through bank loans ( financing activities/ Cash Inflow), you put the same in operating activities & then you earn & buy new property/investment(Cash Outflow but appreciative) or pay back ur bank liabilities(Cash Outflow but appreciative). Operating is the most important among all other activities for the long term sustainability of the business.
statement of cash flow >>>>>>>>>
Cash Flow statement has these three heads because they are directly related to cash moment in the busniess
CASH FLOW STATEMENT .........................................
