Uses of cash flow statements, Accounting Basics

Uses of cash flow statements:

The main usefulness of cash flow analysis is that it facilitates the Finance manager to approximation the cash necessities of the firm and match the cash outflows and cash inflows in such a way that the gross result will either decrease the cost of capital or maximizes the rate of return or may be both.  A number of the additional uses of cash flow analysis comprise the subsequent:

1. It facilitates the efficient planning and coordination of financial operations

2. It facilitates proper allocation of cash along with the a variety of activities of the firm

3. It aids the management in its investment decision

4. It make easy the management in accurately analyzing the past business activities and plan for future.

5. It offers the liquidity picture of the concern etc

Posted Date: 10/15/2012 6:42:56 AM | Location : United States

Related Discussions:- Uses of cash flow statements, Assignment Help, Ask Question on Uses of cash flow statements, Get Answer, Expert's Help, Uses of cash flow statements Discussions

Write discussion on Uses of cash flow statements
Your posts are moderated
Related Questions
A company absorbs overheads on machine hours that are budgeted at 11,250. The budgeted overhead is $281 250.  Results illustrate actual hours of 10 980 and overhead of $276 652.

Weighted-average under periodic inventory procedure the weighted-average method of inventory costing is a income of costing ending inventory using a weighted-average unit cost. Com

Split common stock 4 to 1 and reduced PAR from $80 to $20. After the split there were 600,000 shares.

On January 1, 2012, Lexmark Company's Accounts receivable account had a debit balance of $10,000. During January, 2012, the company billed customers for services in the amount of

Q. Example of Accumulated Depreciation account? Along with other items the trial balance of Korman Company for 2010 December 31 includes the following account balances

Q. What is Depreciation? Depreciation -- an expense which is supposed to reflect the loss in value of a fixed asset. Forinstance if a machine will entirely wear out after ten y

The past of accounting specifies the evolutionary pattern that reflects changing socioecoiom conditions and the enlarged reasons is that accounting is applied. In  the  current  co

Q. What do you mean by Aging? Aging -- a process where accounts receivable are sorted out by age (typically current, 30 to60 days old, 60 to 120 days old and so on.) Aging perm

On December 31, 2013, University Theatres issued $500,000 face value of bonds. The stated rate is 8%, and interest is paid semiannually on June 30 and December 31. The bonds mature

Q. What is depreciable amount? The dissimilarity between assets's cost and its estimated residual value is an asset's depreciable amount. To persuade the matching principle the