Cash flow statement

[Derek Atkins]

Kash <kash at warmplanetbikes.com> writes:

> Derek-
> Thanks for verifying that the numbers in the Gnucash cash flow are
> accurate, but I still need to understand what GnuCash is doing and how
> I can use it to help generate a standard cash flow statement.
>
> What I think you mean by "line around selected accounts" is:
> Cash flow shows the movement of assets into and out of a
> business. This means that only transactions that involve an asset
> account and a non asset account are recorded on a cash flow statement.

Not quite. The cash flow report shows the movement of value into and out
of a set of selected accounts.  If the selected accounts is purely your
Assets, then it will should you value movement into and out of those
assets, but not between those selected assets.  If you select an expense
account, it will show you value into and out of that expense.

> For example:
> Asset(or bank) to expense gets recorded, but bank to bank does not.

If you select both bank accounts for the report, then this is correct

> Asset to liability gets recorded but liability to A/P does not.

This would be true if you have selected your asset accounts but NOT your
liability or A/P accounts.

> Income to asset gets recorded but A/r to income does not.

This would be true if you selected all your assets *except* A/R.

> If somebody could please verify that what is displayed in the "money
> into selected accounts" and "money out of selected accounts" sections
> of Gnucash's cash flow statement is consistent with this, I'd be
> grateful.

It's all based on which accounts you select for the report.  Like I
said, draw a circle around the set of selected accounts, and the report
will show all value that crosses the line.

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-derek

-- 
       Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
       Member, MIT Student Information Processing Board  (SIPB)
       URL: http://web.mit.edu/warlord/    PP-ASEL-IA     N1NWH
       warlord at MIT.EDU                        PGP key available