Class 12 Accountancy — Chapter 6: Cash Flow Statement

What you'll learn

• ▸Introduction and Purpose of Cash Flow Statement
• ▸Cash and Cash Equivalents
• ▸Classification of Activities
• ▸Cash Flow from Operating Activities
• ▸Cash Flow from Investing Activities
• ▸Cash Flow from Financing Activities
• ▸Benefits of Cash Flow Statement
• ▸Methods of Preparing Cash Flow Statement

Chapter Summary

--- PAGE 1 --- 12128CH06 Cash Flow Statement 6 Till now you have learnt about the financial statements being primarily inclusive of Position Statement (showing the financial position of an enterprise as on a particular date) and Income Statement (showing the result of the operational activities of an enterprise over a particular period). There is also a third important financial statement known as _Cash flow statement_, which shows inflows and outflows of the cash and cash equivalents. This statement is usually prepared by companies which comes as a tool in the hands of users of financial information to know about the sources and uses of cash and cash equivalents of an enterprise over a period of time from various activities of an enterprise. It has gained substantial importance in the last decade because of its practical utility to the users of financial information. LEARNING OBJECTIVES After studyi…

Practice Questions from this Chapter

Tap "Get Solution" on any question to ask our AI tutor.

1. Explain cash flow statement's purpose. Get Solution →
2. List three types of business cash flow. Get Solution →
3. Give real-world cash flow examples. Get Solution →
4. Which of the following is NOT one of the three primary financial statements mentioned in the chapter's introduction? Get Solution →
5. According to AS-3, what are the three classifications of activities in a Cash Flow Statement? Get Solution →
6. As per the definition in AS-3, 'Cash' comprises cash in hand and what else? Get Solution →
7. What is the typical maximum maturity period from the date of acquisition for an investment to qualify as a 'cash equivalent'? Get Solution →
8. Which category of activities are described as the principal revenue-generating activities of an enterprise? Get Solution →

Did you know?

• 💡 Ancient Lydians created the first known coins over 2,600 years ago.
• 💡 The world's fastest money moves electronically at nearly the speed of light.
• 💡 On Yap Island, giant stone wheels called Rai once served as currency.
• 💡 Most of the world's money exists as digital data, not physical banknotes or coins.
• 💡 Salt was once so valuable it was used as money, leading to the word 'salary'.

Frequently Asked Questions

Related Chapters