Unit VI: Statement of Cash Flow | BCA 2nd Semester Financial Accounting I Notes Pdf

A cash flow statement is a standard financial statement that shows how much cash we have on hand at any given time. While income statements are helpful in determining how much money we've spent and earned, they don't always indicate how much cash we have on hand at any given time.

When we adopt accrual accounting, we record income and costs when they are generated or incurred, rather than when the money leaves or enters our bank accounts. (We only record money in cash accounting after we have it on hand.) As a result, even if income is reflected on our income statement, we may not have the cash to pay for it. The cash flow statement corrects the information on our income statement so that we can view our net cash flow or the exact amount of cash we have on hand at any given time.

In this “Statement of Cash Flow – Financial Accounting I” you will learn about the following topics:

1. Cash Flow Statement
2. Why Do We Need Cash Flow Statements?
3. Negative Cash Flow vs. Positive Cash Flow
4. Statements of Cash Flow Using the Direct and Indirect Methods
5. The Direct Method of Calculating Cash Flow
6. The Indirect Method of Calculating Cash Flow
7. Example of a Cash Flow Statement
8. The Three Sections of a Cash Flow Statement
9. Cash Flow from Operating Activities
10. Cash Flow from Operating Activities in Our Example
11. Cash Flow from Investing Activities
12. Cash Flow from Investing Activities in Our Example
13. Cash Flow from Financing Activities
14. Cash Flow from Financing Activities in our example
15. Direct Method vs Indirect Method of Presentation
16. What Can the Statement of Cash Flows Tell Us?

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BCA 2nd Semester Financial Accounting I Notes Pdf:

• Unit I: Introduction of Financial Accounting
• Unit II: Recording, Handling, and Summarizing the Accounting Information
• Unit III: Income Statement in Financial Accounting
• Unit IV: Balance Sheet in Financial Accounting
• Unit V: Accounting Worksheet in Financial Accounting
• Unit VII: Concepts of Annual Report in Financial Accounting
• Unit VIII: Accounting Information System and the Use of Computers in Accounting