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Cash Flow Statement
Question
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Give the meaning of 'Cash Flow'. 

Answer

‘Cash Flows’ is the movement of cash in and out of non-cash items. Receipt of cash from a non-cash item is termed as cash inflow whereas cash payment in respect of such items as cash outflow.

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Some More Questions From Cash Flow Statement Chapter

While preparing the 'Cash Flow Statement' the accountant of Gulfam Ltd., a financing company showed 'Dividend received on Investments' as 'Investing Activity'. Was he correct in doing so? Give reason.

Following is the Balance Sheets of Thermal Power Ltd. as at 31-3-2014:

What is meant by 'Cash Equivalents' while preparing Cash Flow Statement?

State the objective of preparing 'Cash Flow Statement'.

Prepare a Cash Flow Statement on the basis of the information given in the Balance Sheets of Liva Ltd. as at 31-3-2013 and 31-3-2012:

Notes to Accounts: 
Note 1

Particulars

2013
Rs

2012
Rs

Reserves and Surplus
Surplus (balance in statement of profit and loss)

1,32,000

24,000



Under which type of activity will you classify Dividend received by a financial company while preparing Cash Flow Statement? 

What is meant by Cash from Operating Activities? 

State the purpose of preparing a Cash Flow Statement.

While preparing Cash Flow Statements what type of activity is, Payments of Cash to acquire Debentures by an investment company?

Give the meaning of 'Cash Flow'.