Categories: Cash

Cash Flow Statement Format: An In-Depth Look at Forex Trading

A cash flow statement is a financial report that shows the flows of cash in and out of a business. It is one of the key financial documents used to analyze the performance of a company’s operations and its financial position. A cash flow statement reflects cash payments and receipts within a specific period, such as one quarter or one year. It is divided into three sections: operating activities, investing activities, and financing activities. The primary purpose of a cash flow statement is to provide information about how a business is using its resources to generate cash and fund operations. The statement can also be used to identify potential cash flow problems, track trends, and measure liquidity. Generally accepted accounting principles (GAAP) require that companies follow a specific cash flow statement format which begins with the operating activities, followed by investing activities, and finally the financing activities.

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Categories: Cash

Understanding Loan Made to Stockholder on Cash Flow Statement

Loan made to Stockholders, which may include a loan from shareholders, represents an inflow of cash from this particular shareholder to the company. This loan is typically either secured or unsecured and is reported in the financing section of the cash flow statement. This type of loan signifies a financing activity as the company is receiving cash inflow from the stockholder. Any payments or interest paid to the loan must be reported as well to accurately reflect the cash flow.

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