How to Prepare Cash-Flow Statements
Posted by Steven
A Cash flow statement is always prepared to give a summary of the activities for a given period of time. It is always divided into three parts namely, financial activities, operating activities and investing activities. Its format may be indirect or direct whereby the three categories are discussed widely. When preparing the cash flow statement, you have to ensure that information is flowing from one report to the next, based on reporting order. This so because the statement of cash flows cannot be cleared before the other parts are finished and the information that is need to clear the statements comes from the reports that are always recorded on a monthly basis.
