The cash flow statement provides data on all cash inflows that the company receives from its current activities and external sources of investment.
The cash flow statement includes cash received by the business from operations, investments and financing, the amount of which is called net cash flow.
The first section of the cash flow statement is the cash flow from operations, which includes transactions for all types of operating activities.
Cash flow from investments is the second section of the cash flow statement and is the result of investment profits and losses.
Cash flow from financing is the final section, which provides an overview of the cash used by debt and equity.
Accrual accounting is a method of accounting in which revenue or expenses are recorded at the time of the transaction, and not at the time the payment is received or made.
Performance Based Management (ABM) is a means of analyzing a company’s profitability by looking at every aspect of its business to determine its strengths and weaknesses.
Adjusting journal entries are used to record transactions that have occurred but have not yet been properly accounted for in accordance with the accrual basis.
The annual report is a corporate document distributed to shareholders, which sets out the financial position and activities of the company for the previous year.
An asset is a resource with economic value that is owned or managed by an individual, corporation or country with the expectation that it will provide benefits in the future.