Cash flow , Interest and Equivalence
CASH FLOW Out of all current assets cash is most liquid and important component . Cash is require4d for conducting central business activities of any firm . Other current assets such as debtors , bill receivable , stock etc, ultimately converted into cash within a very short time hence require proper management for its proper control. The term cash include3s not only currency but also near cash assets such as marketable securities cash at bank , cheques and demand deposit in bank. Every business entity(firm) is continuously engaged in receiving and making cash payments , termed "Cash flow". The flows reflect and determine the firm's financial health. Cashflow is a movement of money into or out of a business project or financial product. It is usually measured for a specific time period. Cash flow statement shows the effort of all cash transactions over a period of time. Cashflow statement may be defined as a logical and systematic statement which shows the change i...