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CBSE Grade 12 Accounting Fundamentals
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Module 10
Cash Flow Statement
1
AS-3: Classifying Business Activities
Classify business activities into Operating, Investing, and Financing activities as per AS-3.
2
Net Profit Before Tax and Extraordinary Items
Calculate Net Profit before Tax and Extraordinary Items from the Statement of Profit and Loss.
3
Adjusting Net Profit: Non-Cash and Non-Operating Items
Adjust net profit for non-cash and non-operating items (e.g., depreciation, profit/loss on sale of assets).
4
Indirect Method: Operating Cash Flow
Calculate Cash Flow from Operating Activities by adjusting for changes in current assets and current liabilities.
5
Cash Flow from Investing Activities
Calculate Cash Flow from Investing Activities from transactions involving non-current assets and investments.
6
Cash Flow from Financing Activities
Calculate Cash Flow from Financing Activities from transactions involving non-current liabilities and shareholders' equity.
7
Mastering the Cash Flow Statement
Prepare a complete Cash Flow Statement in the prescribed format from comparative balance sheets and additional information.
8
Reconciling Cash Flow: The Final Check
Verify the final result of the Cash Flow Statement with the change in Cash and Cash Equivalents.
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