Corporate Accounting

16

Cash Flow Statement

LEARNING OBJECTIVES

After studying this chapter you should be able to understand:

1. The meaning of cash flow and cash flow statement

2. The uses of cash flow statement

3. The limitations of cash flow statement

4. The classification of business transactions into operating activities, investing activities and financing activities according to Accounting Standard-3 (Revised)

5. Preparation of cash slow statement as per (AS)-3 by both direct and indirect methods

6. Accounting treatment of special items (non-cash expense non-operating income)

7. Various stages involved in the preparation of cash flow statement (six stages with illustrations) in accordance with accounting standard (AS)-3 (Revised)

The end product of the accounting process ...