ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A record of your assets and liabilities is called a cash flow statement. A difference between actual spending and budgeted spending is called a budget variance. Using your checkbook as budgeting system does not serve the purpose of planning for spending. Your financial needs will change as you move through your life.

Detailed explanation-2: -The statement is TRUE. The statement of cash flows reconciles the beginning and ending balances of the cash asset account by listing the major sources and uses of cash in three sections; operating cash flows, investing cash flows, and financing cash flow.

Detailed explanation-3: -It reconciles ending cash balance with the balance as per bank statement is incorrect about the statement of cash flows.

Detailed explanation-4: -The cash flow statement (previously known as the flow of funds statement), shows the sources of a company’s cash flow and how it was used over a specific time period.

Detailed explanation-5: -A cash flow statement is a financial statement that presents total data concerning complete cash inflows a business gains from its continuing progress and external financing sources, as well as all cash outflows that pay for trading activities and finances during a delivered time.