How to Make Cash Flow Statement

What is Cash Flow Statement/Cash Flow Statement Definition

It is a statement in which an organisation is recorded inflow and outflow of cash.

How to Make Cash Flow StatementThere are some activities i.e..operating,investing,and financing activities. In Operating Activities ,current assets and current liabilities are recorded. When assets are increased then less such amount from not income and its reason is i.e..out flowing of cash in case of purchasing some assets it mean increase of current assets. Add amount in case of decrease in assets. And when liabilities are increased then just add such amount in net income because this show that cash is not out flowed. Means this amount is not utilised for time being. But when decrease in liabilities show paid off amount so outflow of money is recorded. In Investing Activities only fixed assets and long term liabilities are revealed. Above mentioned rule is same here for recording assets and liabilities. And in Financing Activities transactions of equity is recorded.

Cash Flow Statement Format/Cash Flow Statement Example