Accounting Assignment Help >> Cash Flow Statements Assignment Help

Live Accounting Experts: Cash Flow Statements Assignment Help, Accounting Projects Assistance

Cash flow statements theory is very important in accounting subject and the problem under cash flow statements are very interesting to solve. The cash flow statements concept must be clear for studying accounting subjects, sometimes students stuck with cash flow statements problems and they need expert’s assistance. We at Expertsmind.com offer cash flow statements accounting solutions, cash flow statements assignment help, accounting homework help and cash flow statements problems solutions with best possible answers. We have instant accounting experts who can assist you in accounting projects with best support for 24*7 hours.

CASH FLOW STATEMENT

Cash flow Statement is analysis of evaluating the effectiveness with which entity has managed working capital. In Cash flow statement business generates income from three activities

• operating

• Financing

• Investing

In case of cash flow from operating activities are greater than or equal to the profit for the period it may be an indication that business is managing its working capital efficiently and effectively. On the other hand in the cash flows from the operating activities are lower than the net profits for the period it concludes that the working capital management needs to be improved.

• This statement provides a tool to evaluate the liquidity financial stability of the entity.

• Present detailed summary of cash flows the data which is not directly taken from income statement or balance sheet

• Serves as an indicator of amount, timing an extent of future cash flow

• Recognizes the profit when it is realized not when it is accrued.

• Facilitates comparability as the all reporting are standardized

• Reports the data required for calculation of internal rate of return

• Measures the ability of an entity to pay the cash dividends to the owners, salaries to employees and statement of creditors invoice

It has two methods of presentation

• Direct method

• Indirect method