Some possible Revision Notes for the chapter "Cash Flow Statement" in Class 12 Accountancy are:
1. A cash flow statement is a financial statement that shows the inflow and outflow of cash in a business over a period of time.
2. A cash flow statement helps to analyze the cash position of a business and facilitates effective cash management and investment decisions.
3. A cash flow statement shows cash flows from operating activities, investing activities, and financing activities.
4. Cash flows from operating activities include cash inflows and outflows related to the main business operations such as sales and expenses.
5. Cash flows from investing activities include cash inflows and outflows related to investments in long-term assets such as property and equipment.
6. Cash flows from financing activities include cash inflows and outflows related to financing such as issuing and repaying of debt, payment of dividends, and issuance of equity shares.
7. Direct and indirect methods are used to prepare the cash flow statement.
8. Under the direct method, cash receipts and payments are directly recorded for operating activities, while under the indirect method, net profit or loss is adjusted for non-cash transactions and changes in operating assets and liabilities to derive cash flows.
9. The cash flow statement is prepared in accordance with Accounting Standard 3 (AS-3) issued by the Institute of Chartered Accountants of India.
10. Limitations of a cash flow statement include the possibility of accounting manipulations, the need for accurate data and estimation of future cash flows, and the impact of non-cash transactions.
More:-
Revision Notes for Physical Education
Revision Notes for Business Studies
click here for other Chapters of Accountancy.
.jpg)
