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