Hi
I have a query - thanks in advance for your help.
Investment income for the year 9k, of that 9k only 4k of it has been received in the bank account.
How should this be shown in cash flow of the operating & investment sections?
Thanks
Replies (2)
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Not sure what you are preparing - "operating and investment sections" of what?
But if you are preparing some kind of cash flow statement you only include what has been received or paid in cash. The clue is in the word "cash".
But if you are preparing any kind of income or earnings statement you include the full amount of income that has been earned, regardless of how much of it has been received in cash.