Uses of cash flow statements, Accounting Basics

Assignment Help:

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


Related Discussions:- Uses of cash flow statements

Learning objectives of horizontal and vertical analysis, Q. Learning object...

Q. Learning objectives of Horizontal and vertical analysis? - An account is a storage element used to classify and summarize money measurements of business activities of a simi

Explain accrual basis of accounting, Q. Explain accrual basis of accounting...

Q. Explain accrual basis of accounting? In certain circumstances companies may perhaps use the cash basis for income tax purposes. All through the text we use the accrual basis

Management, briefly explain management process

briefly explain management process

Analysis on the organizational assessment study dataset, Complete a descrip...

Complete a descriptive analysis of the following data elements in the Organizational Assessment Study dataset. Use appropriate graphical tools and descriptive statistics to charact

The ratio of __________ to __________ is an example, The ratio of _________...

The ratio of __________ to __________ is an example of a __________ ratio. A. quick assets; current liabilities; leverage B. cost of goods sold; total assets; asset utilization

Responsibility of general manager and salesperson, Q. Responsibility of Gen...

Q. Responsibility of General Manager and salesperson? Upon promotion to manager Tracy will start the transformation from auditor to executive. She will manage numerous audits a

Amount of dividends, Houston Corporation has the following stock outstandin...

Houston Corporation has the following stock outstanding:     In 2012, Houston paid $330,000 in dividends. No dividends were paid in 2011 or 2010. Required : a)

Meranda corporation purchases a machine for $125, Meranda Corporation purch...

Meranda Corporation purchases a machine for $125,000. It has an estimated salvage value of $10,000 an is expected to produce 50,000 units in its lifetime. During the first year of

Prepaid or period expense, Are mailing lists are considered as prepaid or p...

Are mailing lists are considered as prepaid or period expens?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd