Contabilidad

Cash flow
Accounting is based upon accrual concepts that report revenues as earned and expenses as incurred rather than when received and paid. Accrual information is perhaps the best indicator of business or failure. However one cannot ignore the importance of cash flows. For examples, a rapidly growing successful business can be profitable and still experience cash flow difficulties in tryingto keep up with the need for expanded facilities and inventory. On, the other hand a business may appear profitable on an accrual basis, but may be experiencing delays in collecting receivables, and this can impose server liquidity constrains. Or, as business may be paying generous dividends, but only because cash is being produced from the disposal of core assets. Sophisticated analysis of thebalance sheet and income statement will often reveal such issue.
The statement of cash flow
Rather than depending upon sophisticated financial statement users to require another financial
Statement that clearly highlights the cas flow of a business entity. This required financial statement is appropriately named the statement of cash flows. The statements of cash flows can be seen as anoutgrowth of the FASB’s conceptual framework. It was pointed out that the FASAB cited one objective of financial reporting as flows: information should be helpful in assessing the amounts, timing and uncertainty of an organization’s cash inflows and outflows. The applicable rules require than the statement of cash flows provide three broad categories that reveal information about operating activities,investing activities, investing activities and financing activities. In addition, businesses are required to reveal significant non cash investing financing transactions.
Cash and equivalents: in preparing the statement of cash flows, companies broadly define “cash” to consist of cash and items that are equivalent to cash. As a general rule, cash equivalents are short-term, highly liquidinvestments that mature in 90 or less.
OPERATIN, INVESTING, AND FINANCING ACTIVITIES.
Operating activities: cash inflows from operating activities consist of receipts from costumers for providing goods and services and cash received from interest and dividend income (as well as the proceeds upon the sale of “trading securities”). Cash outflows consist of payments for inventory, employee salaries andwages, taxes, interest, and other normal business expenses (and the cost of” trading securities” purchase. To generalize, cash from operating activities is generally linked to those transactions and events that that enter into the determination of income. However, another way to view “operating” cash flow is to include anything that in not an “investing” or “financing” cash flow as described below.Investing activities : cash inflows from investing activities result from items such as the sale of stock and and investments (other than “trading securities”), disposal of long-term productive assets, and receipt of principal repayments on long term assets or long-term investment (other than “trading securities”) in other firms, loans made by the entity to others and similar and similar items.Financing activities:
Cash inflows from financing activities relate to the proceeds received when a company issues into own stoke or bonds, borrowings under mortgage notes and loans and so forth. Cash outflows for financing activities include repayments of amounts borrowed, acquisitions of treasury stoke, and dividend distributions to shareholders.
Noncash investing and financingactivities
Noncash events a select set of important investing and activities occur without generating or consuming any cash. For a note payable. While these transactions do not entail a direct inflow outflow of cash, they do pertain to significant investing and/ or financing events when the FASB designed the statement of cash flows, they decided to require a separate section reporting these noncash...