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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,

 

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The cash inflows from new?short-term bank loansand the cash outflows to repay the principal amount of short-term bank loans are reported in the?financing activities?section of the?statement of cash flows.

The interest payments for short-term and long-term bank loans are reported in the?operating activities section of the statement of cash flows
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