Cash Flows of the Company
5.1.In this chapter, we will first look at the advantages of using the Receipts and Payments Account (Cash Flow statement) over the Revenue Account and try to reconcile the Cash Flow statement to the Revenue Account and the Balance Sheet. We will use the consolidated accounts figures for our analysis.
What are the advantages of using the Cash Flow Statement over the Revenue Account?
5.2.You may ask, why not just use the Revenue Account and the Balance Sheet? Why bother with the Cash Flow statement at all? These questions bring us back to the basics of accounting.
5.3.The Cash Flow statement, Revenue Account, and the Balance Sheet must dovetail each other. Given the Revenue Account and the Balance ...