Treatment of short term loans and advances in cash flow satement?
Dear Student,
Short-term loan and advances are the loans and advances which are given for a short period of time. So they are considered as current assets of a company. Therefore short term loan and advances will be treated as current assets and will be shown under heading "change is the working capital requirement in cash flow" under operating activity.
Hope this information be helpful to you.
Regards,
Short-term loan and advances are the loans and advances which are given for a short period of time. So they are considered as current assets of a company. Therefore short term loan and advances will be treated as current assets and will be shown under heading "change is the working capital requirement in cash flow" under operating activity.
Hope this information be helpful to you.
Regards,