Cash example sentences

Sometimes debenture can be issued to vendor or suppliers of patents, copyrights and for transfer of intellectual property rights on preferential basis without receiving money in cash.Similarly, an expense is recognised not when cash is paid but when an asset or service has been used to generate revenue.If a person gets Re 1 she will put Rs 1/(1 + cdr) in her bank account and keep Rs cdr/(1 + cdr) in cash.Therefore, it becomes necessary to adjust the amount of net profit/loss as shown by Profit and Loss Account for arriving at cash flows from operating activities.Illustration 10 shows both types of Cash Flow Statement.Similarly, if the cash flows from operating activities are worked by direct method while preparing the cash flow statement, it will be termed as 'direct method Cash Flow Statement'.When cash is paid into the bank, the amount deposited is written on the left side in the bank column and at the same time the same amount is entered on the right side in the cash column.Commercial banks generally lend money by providing overdraft and cash credit facilities, loans and advances.However, unless it is specified clearly as to which method is to be used, the cash flow statement may preferably be prepared by an indirect method as is done by most companies in practive.Thus, the cash flow statements prepared in Illustrations 7, 8 and 9 fall under this category as the cash flows from operating activities have been worked out by indirect method.The debit balance of the bank account as per the cash book should be equal to the credit balance of the account of the business in the books of the bank.A business unit selling goods on credit, or having a slow sales turnover, for example, would require more working capital as compared to a concern selling its goods and services on cash basis or having a speedier turnover.When cheques are issued by the firm to suppliers or creditors of the firm, these are immediately entered on the credit side of the cash book.adjusted for ascertaining cash flows from operating activities.None of the receivable income and payable expense is to be entered in this account as they do not involve inflow or outflow of cash.