Sign In
Not register? Register Now!
Essay Available:
Pages:
1 page/≈275 words
Sources:
1 Source
Level:
APA
Subject:
Business & Marketing
Type:
Essay
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 4.32
Topic:

FMA 2 of 5: Statement of cash flow and its importance in decision making (Essay Sample)

Instructions:
Describe the statement of cash flows and why it is important to financial decision making. Your response should be at least 250 words in length. You are required to use at least your textbook as source material for your response. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations. Text book Practical Financial Management 6th Edition Lasher © 2011 Cengage Learning, ISBN: 1439080496, 9781439080498, 1133464165, 9781133464167, 1111258201, 9781111258207 source..
Content:

Statement of cash flow and its importance in decision making
Name
University
Date
Statement of cash flow and its importance in decision making
Statement of cash flow shows the flow of cash for a particular period of time. It is an important aspect in business decision making because it is used in analyzing financial performance and activities of a business. This is what makes statement of cash flow vital in decision making. It provides the financial picture of what business has been doing with its available cash for a period of time. This paper seeks to describe statement of cash flow and its importance in decision making (Lasher, 2011).
Decision making in business requires financial ratios which are calculated from statement of cash flows. These ratios are used when making decisions by management, suppliers, investors and lenders. Statement of cash flow provides effective position of business for decision making in relation to liquidity of the business, asset management, debt management, profitability, and market value of the business. Calculation of cash flow statements depends on the applied accounting rules that govern the recording and use of cash flow (Lasher, 2011).
In conclusion, statement of cash flow includes performance elements such as revenue, gains, losses, expenses, and comprehensive income, assets and liabilities. Business decision makers such as management, lenders, investors and suppliers use cash flow investing activities in making decisions for investment an...
Get the Whole Paper!
Not exactly what you need?
Do you need a custom essay? Order right now:

You Might Also Like Other Topics Related to time management:

  • Is technology a blessing or a curse in disaster management
    Description: Is technology a blessing or a curse in disaster management Technology Essay...
    2 pages/≈550 words | 2 Sources | APA | Technology | Essay |
  • Press Release
    Description: Press Release Business and Marketing Essay...
    1 page/≈275 words | No Sources | APA | Business & Marketing | Essay |
  • Project Management Maturity Model
    Description: Undergraduate writing level 2 pages Business and Marketing Format Style English (U.S.) Essay. Project Management Maturity Model...
    2 pages/≈550 words | 2 Sources | APA | Business & Marketing | Essay |
Need a Plagiarism Free Essay?
Submit your instructions!