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cash flow statement

    CASH FLOW STATEMENT CASH FLOW STATEMENT IS CLASSIFIED INTO THREE MAIN ACTIVITIES. 1.CASH FLOW FROM OPERATING ACTIVITIES. 2.CASH FLOW FROM INVESTING ACTIVITIES. 3.CASH FLOW FROM FINANCING ACTIVITIES.   1.OPERATING ACTIVITIES The operating activities section of the cash flow statement is a crucial financial reporting element that delves into the cash transactions directly associated with a company's core business operations. It serves as a detailed account of how a business generates and utilizes cash in its day-to-day activities, offering insights into its operational efficiency and financial health.   At its core, operating activities involve the cash flows resulting from the principal revenue-generating activities of a company. This includes cash receipts from customers, payments to suppliers, wages to employees, and operational expenses. Positive cash flow from operating activities signals that a company is effectively covering its operati...
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CALCULATION OF INTEREST ON DRAWINGS

  PARTNERSHIP ACCOUNTING PARTNERSHIP FUNDAMENTALS CALCULATION OF INTEREST ON DRAWINGS Drawings by a partner may be broadly divided into: 1.    Irregular Drawings:   It means drawings of the same amount or different amount at irregular intervals . (product method is followed) 2.    Regular drawings: It means drawings of the same amount at regular intervals.   (Average period method is followed)   1.    Product Method : (a)            Simple method (b)           Product method When unequal amount is withdrawn at different dates or when there are irregular drawings, interest on drawings is calculated with the help of Simple method or Product Method. (a)            Simple Method: Under this method, interest on drawings is calculated for the period the ...
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CASH FLOW STATEMENT INTRODUCTION  A cash flow statement is a financial document that tracks the inflow and outflow of cash within an organization over a specific period. It provides a comprehensive overview of a company's liquidity, revealing how cash is generated and utilized in operational, investing, and financing activities. Broken down into three main sections, the cash flow statement includes operating activities (cash generated from core business operations), investing activities (cash flows from buying or selling assets), and financing activities (cash flows related to debt, equity, or dividend transactions). This statement is crucial for assessing a company's financial health, liquidity, and its ability to meet short-term obligations.
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