𝐀𝐜𝐜𝐫𝐮𝐚𝐥 𝐀𝐜𝐜𝐨𝐮𝐧𝐭𝐢𝐧𝐠- 𝐄𝐱𝐩𝐥𝐚𝐢𝐧𝐞𝐝 𝐓𝐲𝐩𝐞𝐬 𝐨𝐟 𝐀𝐜𝐜𝐫𝐮𝐚𝐥𝐬
Accrual accounting is an accounting method that records revenues and expenses when they incur- same accounting period.
𝐂𝐚𝐬𝐡 𝐀𝐜𝐜𝐨𝐮𝐧𝐭𝐢𝐧𝐠 𝐒𝐭𝐞𝐩-𝐛𝐲-𝐒𝐭𝐞𝐩 𝐒𝐨𝐥𝐯𝐞𝐝 𝐄𝐱𝐚𝐦𝐩𝐥𝐞
Cash Accounting method only considers two kinds of transactions- cash inflows & outflows. It doesn’t recognize any payables, and receivables.
𝐖𝐡𝐚𝐭 𝐢𝐬 𝐅𝐫𝐞𝐞 𝐂𝐚𝐬𝐡 𝐅𝐥𝐨𝐰 (𝐅𝐂𝐅) 𝐚𝐧𝐝 𝐇𝐨𝐰 𝐭𝐨 𝐂𝐚𝐥𝐜𝐮𝐥𝐚𝐭𝐞 𝐈𝐭?
Free Cash Flow (FCF) indicates that a company is financially sound, and it has the ability to grow and pay its debts and dividends.
𝐖𝐡𝐚𝐭 𝐢𝐬 𝐅𝐫𝐞𝐞 𝐂𝐚𝐬𝐡 𝐅𝐥𝐨𝐰 (𝐅𝐂𝐅) 𝐚𝐧𝐝 𝐇𝐨𝐰 𝐭𝐨 𝐂𝐚𝐥𝐜𝐮𝐥𝐚𝐭𝐞 𝐈𝐭? Read More »
𝐇𝐨𝐰 𝐃𝐨 𝐂𝐡𝐚𝐧𝐠𝐞𝐬 𝐢𝐧 𝐖𝐨𝐫𝐤𝐢𝐧𝐠 𝐂𝐚𝐩𝐢𝐭𝐚𝐥 𝐈𝐦𝐩𝐚𝐜𝐭 𝐂𝐚𝐬𝐡 𝐅𝐥𝐨𝐰?
The “impact” relates to how the cash flow has changed when there is positive and negative fluctuation in working capital.
𝐇𝐨𝐰 𝐃𝐨 𝐂𝐡𝐚𝐧𝐠𝐞𝐬 𝐢𝐧 𝐖𝐨𝐫𝐤𝐢𝐧𝐠 𝐂𝐚𝐩𝐢𝐭𝐚𝐥 𝐈𝐦𝐩𝐚𝐜𝐭 𝐂𝐚𝐬𝐡 𝐅𝐥𝐨𝐰? Read More »
𝐂𝐚𝐬𝐡 𝐅𝐥𝐨𝐰 𝐯𝐬. 𝐏𝐫𝐨𝐟𝐢𝐭: 𝐒𝐚𝐦𝐞 𝐨𝐫 𝐃𝐢𝐟𝐟𝐞𝐫𝐞𝐧𝐭 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐌𝐞𝐭𝐫𝐢𝐜𝐬?
Cash flow vs. Profit- Cash Flow represent the liquidity of the company while profitability represents the income and expenses of the company.
𝐂𝐚𝐬𝐡 𝐅𝐥𝐨𝐰 𝐯𝐬. 𝐏𝐫𝐨𝐟𝐢𝐭: 𝐒𝐚𝐦𝐞 𝐨𝐫 𝐃𝐢𝐟𝐟𝐞𝐫𝐞𝐧𝐭 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐌𝐞𝐭𝐫𝐢𝐜𝐬? Read More »
Cash Flow Statement- Format With Solved Example
Cash Flow Statement helps to track cash inflow and outflow. CFS has three main parts: operating, investing, and financing activities.