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when we calculate purchases under cash flow from investing activities ….the opening Asset of this year and closing asset of this year add in T account in some cases we add disposal on credit side? i am confuse about it weather we add disposal or deprecition.
Disposals are on the credit side because they reduce the assets owned by the business.
Assuming that the balances given are the net book values (as opposed to being given separate balances for the cost and the accumulated depreciation) then the depreciation for the year will also. be on the credit side because it reduced the net book value of the assets.
Have you watched my free lectures on Statements of Cash Flows (and on non-current assets)? The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.
Which part of cash flow are short terms investment falling?, your help will highly be appreciated.
They do not fall under any of the headings. They are included in cash and cash equivalents at the end of the statement.
Please do watch my free lectures on this. The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.
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