Category: Financial Statements

Basically a pro forma financial statements (projected financial statements) is a report prepared by the management on the basis of best estimates, assumptions and projections related to an activity or project. Such report is developed to portray, project, analyze and/or Read More …

Cash flow financing activities is the section of cash flow statement contains and displays the movement of those cash flows which are connected with the activities performed during the year to finance the business. A company may need cash during Read More …

Cash flow from investing activities is the section of cash flow statement consists of investments made in assets which in short or long run will generate profit and cash flows for the entity. Assets here would mean and include fixed assets Read More …

Cash flow from operating activities is the most important part of the cash flow statement. This part shows that whether and to what extent the business has generated cash from its main operations. The cash generated from operations as shown Read More …

Definition indirect method cash flow statement, whereby profit or loss is adjusted for the effects of transactions of a non-cash items, any deferrals or accruals of past or future operating cash receipts or payments and items of income or expense associated with Read More …

Definition The direct method cash flow, where major classes of gross cash receipts and gross cash payments are disclosed. (IAS 7, Para 18). Cash flow statement classifies all the business activities into three main categories. These categories are operating, investing Read More …

Definition A Cash Flow Statement is a financial statement showing the movements of cash and cash equivalents during the period. This financial statement demonstrates the effects of changes in the accounts of Balance sheet on cash and cash equivalents. This Read More …

Definition A classified Balance sheet is a financial statement portraying financial position of the business wherein the elements assets, liabilities and equity are classified in an expressive manner. Each balance sheet account is break down into a sub category for conveying better Read More …

Definition Accounting Balance Sheet is a component of Financial Statements which primarily determines the financial position of a business at a given date. As per new International Accounting standards, Balance sheet is also called statement of financial position. Balance Sheet Read More …

After discussing single step income statement, now we will look in to another income statement format called multi step Income Statement. It is a financial report which contains business operations related to sales, cost of goods sold, both operating and Read More …