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Unit VI: Statement of Cash Flow | BCA 2nd Semester Financial Accounting I Notes Pdf

A cash flow statement is a standard financial statement that shows how much cash we have on hand at any given time. While income statements are helpful in determining how much money we've spent and earned, they don't always indicate how much cash we have on hand at any given time.

When we adopt accrual accounting, we record income and costs when they are generated or incurred, rather than when the money leaves or enters our bank accounts. (We only record money in cash accounting after we have it on hand.) As a result, even if income is reflected on our income statement, we may not have the cash to pay for it. The cash flow statement corrects the information on our income statement so that we can view our net cash flow or the exact amount of cash we have on hand at any given time.

Statement of Cash Flow – Financial Accounting I

In this “Statement of Cash Flow – Financial Accounting I” you will learn about the following topics:

  1. Cash Flow Statement
  2. Why Do We Need Cash Flow Statements?
  3. Negative Cash Flow vs. Positive Cash Flow
  4. Statements of Cash Flow Using the Direct and Indirect Methods
  5. The Direct Method of Calculating Cash Flow
  6. The Indirect Method of Calculating Cash Flow
  7. Example of a Cash Flow Statement
  8. The Three Sections of a Cash Flow Statement
  9. Cash Flow from Operating Activities
  10. Cash Flow from Operating Activities in Our Example
  11. Cash Flow from Investing Activities
  12. Cash Flow from Investing Activities in Our Example
  13. Cash Flow from Financing Activities
  14. Cash Flow from Financing Activities in our example
  15. Direct Method vs Indirect Method of Presentation
  16. What Can the Statement of Cash Flows Tell Us?



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BCA 2nd Semester Financial Accounting I Notes Pdf:

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