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1)what is d treatment of discount allowed and discount received in cash flow statement ?

2)why purchases and sales are not included in cash flow statement?

3)what is refund of income tax and why it is deducted from profits to find net profit before tax and extra-ordinary items?

plzz help me experts im waiting,......

there is no treatment of discount allowed and recieved because there is no flow of cash

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1) you are asking in direct method or indirect method
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Discount allowed and discount received are non cash transaction so these are ignored in Direct Method but In case of Indirect Method we add these item in Net Profit before Tax due to non cash item.
 
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  • Discount allowed and discount received are non cash transaction so these are ignored in Direct Method but In case of Indirect Method we add these item in Net Profit before Tax due to non cash item.
  • there is no treatment of discount allowed and recieved because there is no flow of cash
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describe the management process
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