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Financial Accounting for Managers, 3e by Sanjay Dhamija

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11

Cash Flow Statement

CHAPTER OBJECTIVES

This chapter will help the readers to:

  • Appreciate the need and objectives for cash flow statement.
  • Differentiate between cash flow from operating activities, financing activities and investing activities.
  • Prepare cash flow statement from the given information.
  • Analyze the information conveyed by the cash flow statement of companies.
  • Identify and apply key requirements of Ind AS 7 relating to cash flow statements.
11.1 INTRODUCTION

The balance sheet and the profit and loss statement provide useful information about the financial health of a business enterprise. The former provides us information about the sources (liabilities) and application (assets) of funds at the end of the accounting year, ...

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