Practicing Success
Practicing Success
CUET Preparation Today
| Assertion: Cash Flow Statement deals with the past. Reasoning: Cash Flow Statement shows how cash is expected to flow in and out of your business and thus it deals with the future. |
Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.
Both Assertion (A) and reasoning (R) are correct and but R is not the correct explanation of A.
Assertion (A) is true but Reasoning (R) is not correct.
Assertion (A) is not true but Reasoning (R) is correct. |
| Assertion (A) is true but Reasoning (R) is not correct. |
| Cash Flow statement and Cash Flow Projection are different terms. Cash Flow Projection shows how cash is expected to flow in and out of your business. For you, it's an important tool for cash management, letting you know when your outflows are too high or when you might want to arrange short term investment to deal with a cash surplus. As part of your business plan, a Cash Flow Projection will give you a much better idea of how much capital investment your business idea needs. Cash Flow Statement, like Balance Sheet and Income Statement, deals with the past. It does not help in managing the current, day to day requirement. Cash Flow Projection, on the other hand, is a very critical management tool for the successful operation of the business. |
