02 December 2015
cash flow statement means that statement which deals with the cash flow in an organisation
For Example if Opening balance is 10 and there is an expense of 5 and income of 10 and the closing balance is 15
Then in Direct method of cash flow statement we will show opening balance 10 inflow 10 outflow 5 closing balance 15 another method of Indirect method is by making reverse calculation from Net profit and adding depreciation these cash flows will be segregated into Operating Activities, Investing Activities and Financing Activities Extraordinary Items are shown separately
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