Cash flow , Interest and Equivalence

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     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 in cash position by considering and analyzing the various sources of cash inflow and various areas of cash outflows.

DIAGRAMS

A cash flow diagram is a graphical representation which is used by the managemnet accountants and engineers to reflect the flow of cash which is occured for a given project for a particular ti8me period cash flow diagram is diagram is generally restricted is just one stream or sub-stream thereof , such as cash flow   

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