ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Cash flow is a measure of how much cash a business brought in or spent in total over a period of time. Cash flow is typically broken down into cash flow from operating activities, investing activities, and financing activities on the statement of cash flows, a common financial statement.

Detailed explanation-2: -A statement of cash flows indicates the sources and uses of cash during a period. 5. In preparing a statement of cash flows, cash equivalents are subtracted from cash in order to compute the net change in cash during a period.

Detailed explanation-3: -Better cash-flow management begins with measuring business cash flow by looking at three major sources of cash: operations, investing and financing. These three sources correspond to major sections in a company’s cash-flow statement as described by a Securities and Exchange Commission guide to financial statements.

Detailed explanation-4: -This financial statement complements the balance sheet and the income statement. The main components of the CFS are cash from three areas: Operating activities, investing activities, and financing activities.

Detailed explanation-5: -A cash flow statement is a financial statement that provides aggregate data regarding all cash inflows that a company receives from its ongoing operations and external investment sources. It also includes all cash outflows that pay for business activities and investments during a given period.