ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The first stage of the financial planning process constitutes assessment on what is happening in your life right now and how you can change your financial situation.

Detailed explanation-2: -The first step in preparing a cash flow statement is determining the starting balance of cash and cash equivalents at the beginning of the reporting period. This value can be found on the income statement of the same accounting period.

Detailed explanation-3: -Usually, the balance sheet comes first. The cash flow statement shows the overall flow of money in and out of a business. It shows the amount of money coming in and out of a business. It has three major sections: the operations section shows how much money is coming in and going out of the business.

Detailed explanation-4: -Step 1: Pick the balance sheet date A balance sheet is meant to show all of your business assets, liabilities, and shareholders’ equity on a specific day of the year, or within a given period of time. Most companies prepare reports on a quarterly basis, typically on the last day of March, June, September, and December.