What is the accounting concept of Cash Flow?
• 1 of 6 by J L Petriesan Cash flow the amount of cash going through a business. Yes and, of course, no. Like all generic terms, this one has many meanings. Each has their purpose and their strengths and weaknesses, which we will see. Statement of Cash read more • 2 of 6 by A.W. Berry The accounting concept of cash flow provides insight into businesses operations and cash positioning at the time the cash flow is recorded.
Accounting is generally made up of two main divisions, one is financial accounting, where all the accounting concepts, policies and standards must be adhered to when preparing accounts for regulatory reporting to shareholders. The other is management accounting, which is accounting reports prepared for the use of internal management and decision making, which covers generally functions like costing, budgeting and cash-flow.
