Prerequisites to learn fund flow statement and cash flow statement ?

India Discussion in 'General Accountancy Discussion' started by aCCOUNTING503219, Jul 9, 2018.

  1. aCCOUNTING503219

    aCCOUNTING503219

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    What are the prerequisites to learn fund flow statement and cash flow statement ?

    I have this subject called management accounting and i was wondering if i can jump directly to fund flow statement and cash flow statement ?

    The units before it are ,

    Marginal costing
    Cost volume profit analysis
    Analysis and interpretation of financial statements
    Ratio analysis
    Working capital management

    Is it important to go through those chapters before trying to learn about fund flow statement and cash flow statement ?
     
    aCCOUNTING503219, Jul 9, 2018
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  2. aCCOUNTING503219

    Steve-LevelUp VIP Member

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    Generally, courses are laid out to build upon the prior chapter. Although you can jump ahead to funds flow, it is better to follow the course. If you want to read ahead, then just read ahead in the order of the course.
     
    Steve-LevelUp, Jul 9, 2018
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  3. aCCOUNTING503219

    aCCOUNTING503219

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    Thanks ,
    I made some notes about

    Journal entries
    Trial balance
    Trading account
    Profit and loss account
    Balance sheet

    And the fund flow statement and cash flow statement comes after that ?
     
    aCCOUNTING503219, Jul 10, 2018
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  4. aCCOUNTING503219

    Steve-LevelUp VIP Member

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    that sounds about right to me, but I cannot recall the order of the topics in my course.
     
    Steve-LevelUp, Jul 10, 2018
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  5. aCCOUNTING503219

    aCCOUNTING503219

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    Thanks ,
    I have one more question .
    From what accounting source is the cash flow statement (from direct , indirect method )prepared ?
    Balance sheet ?
    Profit and Loss account ?
     
    aCCOUNTING503219, Jul 12, 2018 at 8:38 AM
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  6. aCCOUNTING503219

    Tempe Tony

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    Preparing a cash flow statement (whether direct method or indirect method) was one of the hardest things I did for my degree in accounting, which I just finished. To answer the question above, the short answer is "BOTH."

    The slightly longer answer is that various components of the cash flow statement come from both the balance sheet AND the income statement (aka Profit and Loss account).
     
    Tempe Tony, Jul 12, 2018 at 8:57 AM
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  7. aCCOUNTING503219

    aCCOUNTING503219

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    Thanks for the reply ,
    I found two websites a minute ago explaining few things and one of it says that one needs information from three things usually ...


    Balance sheet
    Profit and Loss account
    Selected data from general ledger

    The information to prepare the Statement of Cash Flows using the indirect method comes from three sources: comparative balance sheets for the last two years of firm data, data from the firm's current income statement, and selected data from the general ledger.


    This website has a lot of information about Cash flow statements ,

    download.nos.org/srsec320newE/320EL30.pdf

    I am still confused about the form ,
    Is there any more websites with the examples of form ?
     
    Last edited by a moderator: Jul 12, 2018 at 12:03 PM
    aCCOUNTING503219, Jul 12, 2018 at 9:26 AM
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