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True or False: Cash flow statement is A summary of the actual incomings and outgoings of cash in a firm?

Cash flow statement

A summary of the actual or anticipated incomings and outgoings of cash in a firm over an accounting period (month, quarter, year).

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Question added by Hany Helmy Haleem , Director of Warehouses , Nasco Automotive
Date Posted: 2015/03/21
Mir Mujtaba Ali
by Mir Mujtaba Ali , Internal Audit Manager , Confidential

True..................................

Wasi Rahman Sheikh
by Wasi Rahman Sheikh , WAREHOUSE SUPERVISOR , AL MUTLAQ FURNITURE MFG

BEST ANSWER <<<<<TRUE>>>>>>>>>

Suzan Qtban
by Suzan Qtban , Group Human Resources Director , Mets group

True. The cash flow statement is indeed a summary of the actual inflows and outflows of cash in a firm over a specific period, typically a month, quarter, or year. It provides insights into how cash is generated and used by the company in its operating, investing, and financing activities.

Chukwunweike Ikuni
by Chukwunweike Ikuni , hse officer , Midwestern Oil and Gas Co.Ltd

Cash flow is the financial statement that captured how fund is generated and also been utilized within a specic period by the company.

Berhane Hagos Geremeskel
by Berhane Hagos Geremeskel , Humanitarian Project Coordinator , SOS Children's Villages Ethiopia

The anwser is True 

Waleed Hameed
by Waleed Hameed , Contracts Administrator , Power China

True. The cash flow statement summarizes the actual inflows and outflows of cash in a firm, providing insights into its liquidity and financial health.

   

True. A cash flow statement is a summary of the actual incomings and outgoings of cash in a firm over an accounting period. It shows how much cash a company has generated and used during a specific period of time.

The cash flow statement is divided into three sections:

  • Operating activities: This section shows the cash generated from and used for the company's core business operations.
  • Investing activities: This section shows the cash generated from and used for the purchase and sale of long-term assets, such as property, plant, and equipment.
  • Financing activities: This section shows the cash generated from and used for financing activities, such as borrowing and repaying debt and issuing and redeeming stock.

The cash flow statement is an important financial statement that can be used to assess a company's financial health. It can show how well a company is generating cash, how it is using its cash, and how it is managing its debt.

Atef Ghrairi
by Atef Ghrairi , Manager Production , SIA

Yes, but not only, it contains also all one timers like taxes refunds, buying or selling production units, aquisitions, loans refunding, capital increase, LTA from customers, and all treasury impact actions taken to imporve cash flow instantly or in medium time scale.

Baligha Takana
by Baligha Takana , Senior Progrmme Manager , BRDO

True but while the cash flow statement serves as a summary of a firm's cash inflows and outflows, it does have limitations. Non-cash transactions, accrual accounting differences, and timing discrepancies may affect the accuracy of its representation. Thus, while the statement captures a significant portion of incomings and outgoings, it is crucial to consider supplementary financial statements and other metrics for a comprehensive understanding of a firm's financial situation.

مازن عبد الرزاق
by مازن عبد الرزاق , مدير إداري , جمعية خيرية

True or False: Cash flow statement is A summary of the actual incomings and outgoings of cash in a firm?
False. The cash flow statement is not a summary of the actual incomings and outgoings of cash in a firm. It tracks the sources and uses of cash over a certain time period and provides insight into the financial position and performance of the business. It focuses on the cash activity of the business and summarizes cash activities into three areas: operating, investing, and financing activities. The cash flow statement is important for understanding the cash flow dynamics of a company, but it does not provide a detailed summary of all actual cash inflows and outflows.

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