Saturday, February 9, 2013

Three-Stage Process of Analysis of Cash Flows

Information to compute cash flows from investing activities is usually taken from beginning and ending balance sheets and the income statement. We use a three-stage process to determine cash provided or used by investing activities:

(1) identify changes in investing-related accounts,
(2) explain these changes using reconstruction analysis, and
(3) report their cash flow effects.

1 comment:

  1. Nice inforamtion share about three-stage of process of analysis of cash flow.brillient
    Ali mudeen

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