ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The cash flow statement shows the source of cash and helps you monitor incoming and outgoing money. Incoming cash for a business comes from operating activities, investing activities and financial activities.

Detailed explanation-2: -Personal Assets Cash and cash equivalents, certificates of deposit, checking, and savings accounts, money market accounts, physical cash, Treasury bills. Property or land and any structure that is permanently attached to it. Personal property-boats, collectibles, household furnishings, jewelry, vehicles.

Detailed explanation-3: -The three sections of the cash flow statement are: operating activities, investing activities and financing activities.

Detailed explanation-4: -Liquidity represents your ability to cover any short-term cash deficiencies. The personal cash flow statement determines the amount of excess or deficient funds a person will have at the end of a period.