Are there any other ways to think of the Cash Flow Statement other than Revenue Recognition...
Are there any other ways to think of the Cash Flow Statement other than Revenue Recognition and Matching Principles to distinguish between the Income Statement and Cash Flow Statement? What type of statement might it be? Think about (cash vs accrual).
Homework Answers
If one has to distinguish between the Income statement and cash flow statement, other than Revenue Recognition and matching principles, FUND FLOW STATEMENT can be used for this. The difference between cash flow statement and fund flow statement is that of cash vs accrual. In cash flow statement, cash receipts and payments are stated, where as in fund flow statement, sources and application of funds is stated.
Fund is more wider than cash. Fund flow statement uses the accrual method, that is whether cash received or accrued, both are stated. Similarly, whether expense is paid or outstanding, both are stated.
But in cash flow statement, only if the cash is paid or received, then only it is stated.
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Are there any other ways to think of the Cash Flow Statement
other than Revenue Recognition...
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A freshman at Brightest College is seeking your help on revenue and expense recognition and measurement...
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