Ledger Question: Download Questions PDF
What is your experiences with cash flow statement? How is a cash flow statement generated?
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Answer:
Cash Flow statement is a generate income, not the invoices. there are two types of cashflow 1.
Inflow 2. Outflow
1 Inflow: eg. if you received cash from your credit customers,
you will decrease your debtors and it's become inflow to your cashflow statement. Therefore, it's mean that whenever u received in cash that is called inflow.
2.
Outflow: eg. if you made a payment to your suppliers, you will decrease your
creditors and it's outflow, therefore decrease in creditor is outflow.
Inflow 2. Outflow
1 Inflow: eg. if you received cash from your credit customers,
you will decrease your debtors and it's become inflow to your cashflow statement. Therefore, it's mean that whenever u received in cash that is called inflow.
2.
Outflow: eg. if you made a payment to your suppliers, you will decrease your
creditors and it's outflow, therefore decrease in creditor is outflow.
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