The Cash Flow Statement - A Research Paper.
Introduction In financial accounting, a cash flow statement, also known as statement of cash flows or funds flow statement is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, and breaks the analysis down to operating, investing, and financing activities.
Cash flow reflects how much cash is generated from the products and services sold by a company. Cash flow calculations involve making adjustments to net income by adding and subtracting the differences in revenue, expenses and credits which happen when transaction take place from one period to the next.
Cash flow analysis is thought to be more effective in determining enterprise effectiveness and competitiveness in the market because it is a more dynamic examination of actual return on assets and equity. Additionally, this unique use of cash.
A cash flow statement is just like a cash account which starts with opening balance of cash on the debit side to which receipts of cash are added and from the resultant total, the total of all the payments of cash (shown on the credit side) is deducted to find out the closing balance of cash. Treatment of Current Assets and Current Liabilities.
Free Cash Flow Measures A Company 's Financial Health - Free cash flow measures a company’s financial health. This is determined by calculating operating cash flow minus capital expenditures. This only represents the cash that a firm is able to make after spending all required monies needed to keep or expand an asset base.
Accounting Research Paper Topic Ideas for Your Writing. When you deal with the accounting, it is necessary to consider the slightest details. Each paper should be supported by the approved facts and examples. Thus, a student is supposed to carry out in-depth research. However, the way the research will go is predetermined by the chosen topic.
The cash flow statement is the newest of the three financial statements; companies have only been required to furnish investors with it since 1988. The cash flow statement is similar to the income statement, except that it dispenses with some of the abstract items found on the income statement (such as depreciation) and focuses on actual cash.