Discussion and Responses

Discussion and Responses - In this unit you learned about...

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In this unit you learned about the preparation and content of financial statements. A common phrase in finance is "cash is king!" With this in mind, the Statement of Cash Flows has been heralded as the most important financial statement. The Statement of Cash Flows on page 2.1.6 presents how changes in Balance Sheet accounts will affect a company’s cash balance. Refer to that information and discuss how an increase in your company's accounts payable from one period to the next is a means to maintain high cash balances in your company’s bank account. Do you believe there are any ethical considerations in slowing payments to your suppliers for the sake of increasing your company's bank balances? Professor and Class, The statement of cash flows is one of the main financial statements. It reports the cash generated and used by operating activities, investing activities, financing activities and certain supplemental information during the time interval specified in its heading. It provides insight into the company’s available and non-available cash that the balance sheet and income statement cannot. I do not believe that there is any ethical considerations in slowing payments to your supplies for the sake of increasing your company's bank balances. [ CITATION Eak14 \l 1033 ] To operate smoothly, accounting entities require sufficient cash. As a current asset, it is
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