Accounting policies applied in determining cash flow

Abstract

The internationalized economy must have a common language. The first step is the implementation and acceptance of the International Accounting Standards. A healthy economical entity always determines exactly and based on serious and largely accepted accounting policies its cash flow. Why? Because everybody knows that cash means the difference between going ahead with the business and staying back out of stage. This is why this study tries to show some largely agreed accounting policies in determining the cash flow and some methods such as the direct method, the indirect method and a banking method.