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A CFS records a firm’s all cash-based transactions during a particular accounting period Accounting Period Accounting Period refers to the period in which all financialtransactions are recorded and financial statements are prepared. Since cash provides liquidity, it is decisive for the survival of a business.
The Credit default swap helps to transfer the credit risk Credit Risk Credit risk is the probability of a loss owing to the borrower's failure to repay the loan or meet debt obligations. CDS helps the buyer to eliminate the possibility of loss or risk in the financialtransactions, thus providing them encouragement to invest further.
It aims to nullify the difference in the same or next accounting period Accounting Period Accounting Period refers to the period in which all financialtransactions are recorded and financial statements are prepared. Balance confirmation is sought from the top 10 parties as it is audit documentation.
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