Untitled Quiz

Life blood of a business

refer to the actual movement of cash into and out of an organization. In other words, the movement of cash inclusive of inflow of cash and outflow of cash.

It is essential to prepare a statement

of changes in the financial position of a firm on cash basis.

useful tool to the management for taking important financial decision making.

cash flows out of the business

cash flows into the organization

Cash, to Cash Equivalents or to Working Capital and all financial resources which are used in business.

difference between current assets and current liabilities.

refers to changes or movement of funds or changes in working capital in the normal course of business transactions.

represents total of all Current Assets.