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Process Payment Documentation-Cfs
Process Payment Documentation-Cfs
Process Payment Documentation-Cfs
Money inflow is generated by selling the possessed securities. Such exchanges exclude securities held for dealing and
trading activities.
Summary
1) operating activities
2) Investing activities
3) Financial activities
Cash flow refers to the net balance of cash moving into and out of a business at a specific point in time.
CF from operating activities includes :
Cash that enter into determination of net income (Revenue, cost and expenses)
CF from investing activities reports
cash transaction for acquisition and sale of relatively long term permanent
assets
CF from financing activities reports
cash transaction related to cash investment by owner, and borrowing and cash
withdrawals by owner
Terms .
Cash investment: A cash investment is a short-term obligation, usually fewer than 90 days, that provides
a return in the form of interest payments. Cash investments offer a low return compared to other
investments: eg:saving account ,Money market (commercial paper ,Treasury bills) and CD’s)
Securities : investment securities are bonds and shares that have been acquired for investment
purposes.
Bond: Bonds are issued by governments and corporations when they want to raise money.
By buying a bond, you're giving the issuer a loan, and they agree to pay you back the face
value of the loan on a specific date, and to pay you periodic interest payments along the
way, usually twice a year
Stocks are a type of security that gives stockholders a share of ownership in a company. Stocks also are
called “equitie. A stock is a general term used to describe the ownership certificates of any company
common stock, Common and preferred stock both represent a proportional share of
ownership in a company, but you are entitled to different rights depending on which you
invest in. Both preferred and common stocks can be sold or traded on an exchange .
When the government goes to the financial market to raise money, it does so by issuing two
types of debt instruments — treasury bills and government bonds. Treasury bills are issued when
the government needs money for a short period. These bills are issued only by the central
government, and the interest on them is determined by market forces.